Oil Gains 3 Days: Iran Unnerves Markets
Oil prices rose more than 1.5% in Asian trading on Thursday, extending their rally for a third day. This increase was fueled by market concerns about a potential US military strike on Iran that could disrupt oil supplies from the Middle East.
Brent crude rose 99 cents (1.5%) to $69.39 per barrel, while US WTI rose $1.06 (1.7%) to $64.27 per barrel. Since Monday, both have gained about 5% and are now at their highest levels since September 29.
The market has become increasingly cautious after US President Donald Trump increased pressure on Iran over its nuclear program, threatening military action. A US naval group has also reportedly arrived in the region. Iran is the fourth-largest producer in OPEC, with production of around 3.2 million barrels per day—so any disruption could quickly impact prices.
Meanwhile, the Fed held interest rates steady and the Dollar Index strengthened slightly, but oil prices remained strong. Analysts believe the market's primary focus now is the "supply risk" narrative stemming from the US-Iran conflict. This is compounded by weather-related production disruptions in several US regions, further fueling bullish sentiment.
Another supporting factor comes from US inventory data. US crude oil stocks fell by 2.3 million barrels to 423.8 million barrels for the week ending January 23, compared with market expectations for a 1.8 million barrel increase. Several analysts believe the geopolitical risk premium could add $3–$4 per barrel, and if the escalation continues, Brent could potentially reach $72 per barrel. (az)
Source: Newsmaker.id
