Oil prices rose in early trading on Tuesday due to supply concerns after Iran denied holding talks with the United States to end the Gulf war. This contradicts statements by U.S. President Donald Trump, who claimed that a deal could be reached soon.
اضافة اعلان
Market Performance (as of 00:01 GMT):
Brent Crude Futures: Rose $1.06 (1.1%) to $101 per barrel.
U.S. West Texas Intermediate (WTI): Increased $1.58 (1.8%) to $89.71 per barrel.
Context: The "War Premium" Volatility
Crude contracts had plunged by more than 10% on Monday following Trump’s announcement to postpone threatened strikes on Iranian power plants for five days. Trump cited "productive talks" with unnamed Iranian officials that allegedly resulted in "key points of agreement."
Tim Waterer, Chief Market Analyst at KCM Trade, noted:
"By suspending the plan to bomb Iranian power stations for five days, the U.S. effectively stripped a significant portion of the 'war premium' from oil prices."
He added that today’s moderate rise is merely the market attempting to find its balance amidst the turmoil. Traders remain aware that despite the temporary suspension of missile strikes, the Strait of Hormuz is still far from being a safe passage.
Impact on Global Energy Flow
The war has caused a near-total halt to the transit of approximately 20% of global oil and Liquefied Natural Gas (LNG) supplies through the Strait of Hormuz. However, despite the tension, two oil tankers bound for India successfully transited the strait on Monday.
Source: Reuters
