Oil prices steadied after rising over 3% on Thursday as traders gauged the US President Donald Trump’s Iran threats and how a possible escalation in hostilities can impact flows from the Middle East.West Texas Intermediate was close to $66 a barrel post a three-day rally, while Brent settled over $70 for the first time since July.
Trump warned of military strikes if Iran doesn’t make a nuclear deal, injecting a fresh risk premium into prices.
Market concerns are primarily focused on how any fallout from an escalation in tensions could impact shipping through the Strait of Hormuz, a passage that separates Iran and the Arabian peninsula. Tankers carrying crude and liquefied natural gas transit through the strait daily to deliver cargoes worldwide.The Associated Press reported that Iran issued a warning to ships at sea on Thursday that it planned to run a drill on Sunday and Monday that would include live firing in the strait, citing two Pakistani security officials.
Trump warned of military strikes if Iran doesn’t make a nuclear deal, injecting a fresh risk premium into prices.
Market concerns are primarily focused on how any fallout from an escalation in tensions could impact shipping through the Strait of Hormuz, a passage that separates Iran and the Arabian peninsula. Tankers carrying crude and liquefied natural gas transit through the strait daily to deliver cargoes worldwide.The Associated Press reported that Iran issued a warning to ships at sea on Thursday that it planned to run a drill on Sunday and Monday that would include live firing in the strait, citing two Pakistani security officials.
With inputs from Bloomberg
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