Brent Nears US$90 as US-Iran Conflict Heats Up Oil Market
Oil prices held firm after recording their largest daily gain in over two weeks. Brent crude moved closer to US$90 per barrel following a nearly 8% surge in the previous session, while West Texas Intermediate (WTI) traded just below US$84 per barrel.
The price rally follows renewed threats from US President Donald Trump to launch fresh attacks on Iran. Trump stated that Iran would face a severe response following an attack on US troops in Jordan.
The US-Iran conflict risks dragging on, as neither side has reached common ground regarding the Strait of Hormuz or a ceasefire. The Strait of Hormuz remains a focal point, serving as a critical artery for oil shipments from the Persian Gulf to global markets.
Additional support for oil prices stems from a drop in US commercial crude inventories to their lowest level since 2018. US Strategic Petroleum Reserves also declined for the 18th consecutive week, hitting their lowest level since 1983—reinforcing signals of tightening physical energy markets.
Regarding market impact, oil prices remain prone to volatility as the market weighs the risks of Middle East conflict, disruptions in the Strait of Hormuz, and Houthi threats to Red Sea shipping lanes. Should global supplies continue to tighten, Brent prices could remain elevated. However, rising oil prices could also fuel inflationary pressures, sustain high interest rate expectations, and dampen sentiment toward stocks and risk assets. (asd)*
Source: Newsmaker.id
