Oil prices remained virtually unchanged amid new U.S. strikes on Iran – Reuters
Global oil prices remained virtually unchanged on Thursday, July 9, as investors assessed the consequences of new U.S. strikes against Iran and their potential impact on the situation in the Middle East.
As of Thursday morning, Brent crude futures rose 0.1% to $78.08 per barrel, while U.S. WTI crude rose 0.2% to $73.65 per barrel. The day before, both benchmark crude grades gained more than a dollar following reports of new U.S. strikes on Iranian military targets.
Washington stated that the operation was aimed at ensuring the safety of shipping through the Strait of Hormuz. In response, Iran reported strikes on U.S. military facilities in Bahrain and Kuwait. This new escalation casts doubt on the prospects for negotiations to end the war between the countries and fully restore shipping through the Strait of Hormuz.
Analysts note that the oil market will remain extremely sensitive to developments in the Middle East in the near term. If the conflict escalates further, prices could rise to $80 per barrel. At the same time, if geopolitical tensions ease, investors’ attention will shift back to fundamental factors, including rising U.S. oil inventories and plans by major producers to increase output.
This is according to Reuters.
As a reminder, the United States struck more than 90 military targets in Iran in response to a series of attacks by Tehran against shipping in the Strait of Hormuz.
NATO Secretary General Mark Rutte supported the United States’ actions following Iran’s latest attacks on commercial vessels near the Strait of Hormuz.
