US, Iran Agree to Halt Attacks, Oil Prices Stable
Oil prices stabilized on Monday (June 29) after Iran and the United States agreed to halt the latest hostilities in the Gulf region. This agreement helped ease market concerns, although the risk of supply disruptions loomed after attacks on ships near the Strait of Hormuz.
The two countries also agreed to resume talks on the Strait of Hormuz. This move raised hopes that the interim peace deal, which had been threatened by retaliatory attacks in recent days, could still be maintained.
Brent crude futures edged up 4 cents to US$72.03 per barrel at 08:03 GMT. Meanwhile, US West Texas Intermediate (WTI) crude futures rose 44 cents, or 0.6%, to US$69.67 per barrel.
ING analysts believe the market still faces numerous risks, but market participants are currently focused on the recovery of oil shipments. However, they cautioned that overly calm market sentiment could be dangerous if the supply recovery is slower than expected.
Last week, Brent fell 10.6%, recording its third consecutive weekly decline, after oil shipments through the Strait of Hormuz rose to their highest level since the US-Israel war with Iran began in late February. Meanwhile, Middle Eastern energy producers continued loading oil and LNG despite the latest ship attack, while Saudi Aramco resumed oil loading at the Ras Tanura terminal after a nearly four-month hiatus.
Source: Newsmaker.id
