Oil Heats Up, Here's Where to Go Next!
Oil prices maintained most of their sharp gains after tensions in the Middle East escalated. The United States and Iran reportedly traded attacks, while energy infrastructure was targeted again and several ships were impacted around the Strait of Hormuz.
Brent crude hovered near US$114 per barrel after surging nearly 6% in Monday's trading. Meanwhile, West Texas Intermediate, or WTI, hovered below US$105 per barrel. This increase reflects market concerns that global oil supplies are again facing significant risks.
The US military claimed to have intercepted an Iranian attack while guiding two US-flagged vessels through the Strait of Hormuz. In the United Arab Emirates, an oil terminal in Fujairah was also reportedly hit. This incident further undermines the four-week ceasefire between Washington and Tehran.
These tensions arise as the US attempts to open the Strait of Hormuz to stranded ships. However, President Donald Trump has suggested that fighting could last another two to three weeks. This statement reinforces concerns that the risk of energy supply disruptions will not subside anytime soon.
Analysts believe that as long as there is no agreement between the US and Iran, the Strait of Hormuz could remain difficult to navigate. This situation has kept oil prices under upward pressure, especially since the route is one of the most important chokepoints for global energy trade.
The surge in energy prices has also fueled inflation concerns and weighed on the outlook for economic growth. In the US bond market, the 30-year yield rose to its highest level since July, surpassing 5%, as traders began to anticipate that the Fed might need to raise interest rates again to curb price pressures.
5 Key Points
- Brent held near US$114 per barrel after surging nearly 6% in the previous trading session.
- The US and Iran traded attacks again, further fracturing the ceasefire.
- The Fujairah oil terminal in the UAE was reportedly hit by an attack, adding to energy supply risks.
- The Strait of Hormuz remains difficult to navigate, so upward pressure on oil prices remains strong.
- The oil surge has fueled inflation concerns and even fueled speculation that the Fed could turn hawkish again. (asd)*
Source: Newsmaker.id
