Oil Holds High Amid US-Iran Uncertainty
Oil prices are holding steady after posting their biggest gain in about a month. Brent for August delivery is trading below US$95 per barrel, while West Texas Intermediate (WTI) is hovering around US$92 per barrel. The previous increase occurred as market concerns resurfaced over the uncertainty surrounding peace negotiations between the United States and Iran.
On Monday, oil prices surged following reports that Tehran had suspended talks with Washington in protest of Israel's attack on Lebanon. However, the price gains were later pared after US President Donald Trump stated that negotiations with Iran were still ongoing. Trump even mentioned the possibility of a memorandum of understanding to reopen the Strait of Hormuz within about a week.
However, the market remains uncertain. Uncertainty over the extension of the ceasefire and the future of energy flows through the Strait of Hormuz has kept oil prices volatile. A report from the Tasnim news agency also stated that Iran and its regional allies have included in their agenda the closure of the Strait of Hormuz and the Bab el-Mandeb, another vital route for global oil exports.
Analysts believe oil prices have the potential to remain high and volatile as long as energy flows through Hormuz have not fully returned to normal. At 11:20 a.m. Singapore time, Brent fell slightly by 0.4% to US$94.60 per barrel, while WTI weakened by 0.5% to US$91.73 per barrel. Meanwhile, differing statements between Trump and Israeli Prime Minister Benjamin Netanyahu regarding the conflict in Lebanon have added to market uncertainty. (asd)
Source: Newsmaker.id
