US-Iran Conflict Escalates; Oil Prices Surge
Oil prices rose sharply during Wednesday's trading (July 29) following a renewed escalation in tensions between the United States and Iran. Brent crude climbed US$3.30, or 3.9%, to US$87.39 per barrel, while WTI rose US$3.05, or 3.8%, to US$82.31.
The surge followed a US military announcement that it had intercepted Iranian ballistic missiles aimed at American forces in the Middle East. Washington characterized the incident as an attempted surprise attack.
Iran subsequently stated that it had fired several ballistic missiles at a US airbase and the Central Command center in Jordan. These developments dampened hopes that the conflict in the Persian Gulf region might soon subside.
Tensions also spread to Iraq after US and Saudi forces conducted targeted strikes on weapons depots belonging to an Iran-backed group. The group has been accused of launching drone attacks against Saudi Arabian energy facilities.
Oil prices also found support in a decline of approximately 3.3 million barrels in US crude inventories for the week ending July 24. The market is now awaiting official inventory data from the Energy Information Administration.
OPEC+ is also expected to halt planned production increases for three months starting in October. With the conflict escalating and inventories falling, oil prices have the potential to continue rising, although their future trajectory remains dependent on military developments and US stock data. (asd)*
Source: Newsmaker.id
