Oil Stable This Morning, Hormuz Remains Hot
Oil prices are stable after strengthening over the past two days, as the market continues to monitor the conflict between the United States and Iran in the Middle East. Brent is trading below US$89 per barrel after rising nearly 6% in the previous two sessions, while WTI is hovering around US$83 per barrel.
Tensions remain high after the US launched its tenth consecutive day of attacks on Iran. President Donald Trump previously asserted that Tehran would "pay" for the deaths of American soldiers, while Iran retaliated with attacks on Kuwait.
New risks also arise from the Iran-backed Houthi group in Yemen. The Houthis have threatened to block Saudi Arabia's maritime traffic in the Red Sea, a vital route for the export of millions of barrels of Saudi oil through a cross-border pipeline that bypasses the Strait of Hormuz.
However, the market still sees opportunities for diplomacy. Iran said mediators have contacted Tehran with proposals to de-escalate the conflict, while reports have surfaced of a proposed 10-day halt to the attacks. This news has caused oil prices to fluctuate, following the potential for escalation and de-escalation.
As a result, oil prices remain potentially highly volatile. If attacks on ships in the Strait of Hormuz and threats of a Red Sea blockade persist, Brent could rise again. However, if diplomatic proposals develop positively, oil prices are likely to remain stable in the short term. (asd)*
Source:Newsmaker.id
