Oil prices keep climbing as Iran-Israel conflict enters sixth day
Ammon News - Oil prices rose in Asian trade on Wednesday, extending a 4% gain from the previous session on worries that the Iran-Israel conflict could disrupt supplies.
Brent crude futures rose 26 cents, or 0.3%, to $76.71 a barrel by 0440 GMT. U.S. West Texas Intermediate crude futures rose 35 cents, or 0.5%, to $75.19 per barrel.
U.S. President Donald Trump on Tuesday called for Iran's "unconditional surrender" as the Iran-Israel air war entered a sixth day.
The U.S. military is deploying more fighter aircraft to the region to bolster its forces, three officials said on Tuesday.
Analysts said the market was largely worried about supply disruptions in the Strait of Hormuz, which carries a fifth of the world's seaborne oil.
Iran is OPEC's third-largest producer extracting about 3.3 million barrels per day (bpd) of crude oil, but spare capacity among producers in the Organization of the Petroleum Exporting Countries and their allies can readily cover this.
Brent crude oil prices have gained about $10 a barrel over the past two weeks, and Fitch analysts said they expect the geopolitical risk premium in oil prices to be contained at around $5 to $10.
Markets are also looking ahead to a second day of U.S. Federal Reserve discussions on Wednesday, in which the central bank is expected to leave its benchmark overnight interest rate in the 4.25%-4.50% range.
Lower interest rates generally boost economic growth and demand for oil. Reuters
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Ammon
an hour ago
- Ammon
Oil prices settle lower as US sanctions ease fears of escalation in Iran
Ammon News - Oil prices settled down on Friday as the U.S. imposed new Iran-related sanctions, marking a diplomatic approach that fed hopes of a negotiated agreement, a day after President Donald Trump said he might take two weeks to decide U.S. involvement in the Israel-Iran conflict. Brent crude futures settled down $1.84, or 2.33%, to $77.01 a barrel. U.S. West Texas Intermediate crude for July - which did not settle on Thursday as it was a U.S. holiday and expires on Friday - was down 21 cents, or 0.28%, at $74.93. The more liquid August contract settled at $73.84. Brent rose 3.6% on the week, while front-month U.S. crude futures increased 2.7%. The Trump administration issued fresh Iran-related sanctions, including on two entities based in Hong Kong, and counter-terrorism-related sanctions, according to a notice posted to the U.S. Treasury Department website. Oil prices jumped almost 3% on Thursday after Israel bombed nuclear targets in Iran, while Iran - OPEC's third-largest producer - fired missiles and drones at Israel. Neither side showed any sign of backing down in the week-old war. Reuters
Roya News
a day ago
- Roya News
Oil prices rise as Iran-'Israel' tensions enter 7th day
Oil prices climbed Thursday amid ongoing military escalation between Iran and 'Israel', now in its seventh consecutive day, as concerns over potential US involvement fueled investor caution and heightened volatility in global energy markets. Brent crude futures rose $2.15, or 2.8%, to close at $78.85 per barrel. US West Texas Intermediate (WTI) crude for July delivery gained $1.72, or 2.3%, to settle at $76.86 per barrel. Trading volumes were light in US markets due to holiday, but geopolitical tensions remained the dominant force driving prices. Geopolitical Risk Premium 'There's a healthy risk premium priced in right now,' said Tony Sycamore, an analyst at IG trading platform, noting that markets are bracing for either a US strike on Iran or a diplomatic breakthrough. Goldman Sachs echoed this sentiment, stating that a geopolitical premium of around $10 per barrel is currently justified, citing reduced Iranian oil supply and the rising risk of wider conflict. The bank warned Brent could surge past $90 a barrel if the crisis deepens. Phil Flynn, senior analyst at Price Futures Group, said a return to $60, oil levels seen just a month ago, is unlikely even if the Middle East situation de-escalates, given the current market dynamics. Uncertainty Over US Response Trump stated he had not yet made a final decision on whether to intervene directly against Iran, promising to announce his position within two weeks. Priyanka Sachdeva, an analyst at Phillip Nova, said Trump's unpredictable foreign policy stance "keeps markets jittery, awaiting clearer signals that could impact supply flows and regional stability." RBC Capital's Helima Croft warned that any existential threat to Iran could provoke attacks on oil tankers or regional energy infrastructure, especially if Washington becomes directly involved in the conflict. Iran and the Strait of Hormuz Iran, the third-largest oil producer in OPEC, pumps about 3.3 million barrels per day and plays a crucial role in securing the Strait of Hormuz, a key waterway through which between 18 and 21 million barrels of oil and petroleum products pass daily. Any military disruption could choke global energy flows and send prices soaring. Russia and OPEC+ Reassess Strategy Speaking at the St. Petersburg International Economic Forum, Russian Deputy Prime Minister Alexander Novak reiterated the need to stay the course on production plans under the OPEC+ alliance. He projected rising oil demand in the coming summer months and emphasized the importance of market stability amid geopolitical headwinds.
Ammon
2 days ago
- Ammon
ASE index edges down 0.05% to close at 2,646 points
Ammon News - The Amman Stock Exchange (ASE) closed Thursday's trading session with a slight decline of 0.05 percent, ending at 2,646 points. Trading activity included approximately 1.9 million shares, with a total value of JOD 3.8 million executed through 2,120 transactions. Of the companies whose shares were traded, 27 recorded gains, 25 declined, and 30 remained unchanged. Petra
