Hot Oil, Market Anxiety: Hormuz in the Spotlight
Oil prices held steady after surging more than 3% on Thursday, as market participants weighed US President Donald Trump's latest threats against Iran and the risk of escalating conflict in the Middle East.
West Texas Intermediate (WTI) held around $66 per barrel, continuing a three-day rally that was also helped by a weaker US dollar. Meanwhile, Brent held above $70, for the first time since July, after a geopolitical risk premium was reinjected into prices.
The main trigger came from Trump's warning: if Iran refuses to reach a nuclear deal, the option of a military strike remains on the table. This tough tone has the market reconsidering the worst-case scenario, especially if the situation escalates into open confrontation.
The market's biggest focus is on the Strait of Hormuz, the narrow waterway separating Iran and the Arabian Peninsula. This is a vital route through which crude oil and LNG tankers pass daily to supply global markets—so even the slightest disruption could trigger an immediate price spike.
Tensions escalated after the Associated Press reported that Iran warned ships at sea that it would conduct exercises on Sunday and Monday, including live-fire drills, in the Strait of Hormuz, citing two Pakistani security officials. The market is now waiting to see whether these exercises are merely a "show of force" or a sign of further escalation. (az)
Source: Newsmaker.id
