Oil Prices Surge After Iran Uranium Directive
Oil prices surged on Thursday (May 21) after reports that Iran's Supreme Leader had ordered that near-weapons-grade uranium be kept domestically, highlighting a key sticking point in peace negotiations with the US. Brent traded around $107 per barrel, while WTI was at $100.95 per barrel.
This rise followed a 5.6% decline earlier, after US President Donald Trump stated that negotiations were in their final stages. Iran's directive was driven by concerns that sending uranium abroad could increase its vulnerability to attack by the US and Israel.
The oil market remains affected by conflicting news regarding the possible reopening of the Strait of Hormuz, a vital oil shipping route. Although oil prices have risen more than 40% since the start of the conflict, investors are still considering the possibility of a sudden de-escalation.
Global oil inventories have declined at a record pace this month, with large declines recorded in US stockpiles, including strategic reserves, while US oil exports have helped maintain supplies on international markets. Several European airlines reported adequate fuel supplies for the summer, indicating that supply risks have been partially mitigated.
Variables to monitor: Iran's response to the US proposal, oil flows through the Strait of Hormuz, global oil stocks, and US actions regarding the conflict. (arl)*
Source: Newsmaker.id
