Oil Rises, Trump Continues Pressure on Iran
Oil prices rose on Wednesday (July 22nd) after US President Donald Trump downplayed the chances of imminent talks with Iran. The market is again focusing on the risk of global supply disruptions, particularly after the conflict spread from the Middle East to the Black Sea region.
Brent crude rose to near US$92 per barrel, recording gains for the fourth consecutive session. Meanwhile, West Texas Intermediate, or WTI, hovered around US$85 per barrel. Brent's September contract rose 0.5% to US$91.51, while WTI's September contract rose 0.4% to US$84.65 per barrel.
Trump said the US was not interested in meeting with Iran immediately, despite saying Tehran was eager to open talks. He also renewed his threat to attack Pickaxe Mountain, a suspected Iranian nuclear site, and vowed to respond if the Houthis disrupt shipping lanes in the Red Sea.
The US military launched strikes against Iran for the 11th consecutive day. This attack is said to be aimed at weakening Iran's ability to threaten commercial shipping in the Strait of Hormuz, after several tankers were reportedly attacked in recent days near Oman.
Supply risks also come from outside the Middle East. The market is also monitoring a series of attacks on the Caspian Pipeline Consortium terminal on Russia's Black Sea coast, a vital route that transports most of Kazakhstan's crude oil to the global market.
As a result, oil prices have the potential to remain high as long as US-Iran tensions, the Houthi threat in the Red Sea, and the risks in the Strait of Hormuz remain unabated. If the Red Sea is completely closed or Saudi shipping flows are further disrupted, Brent could potentially break through US$100. However, if there are signs of new negotiations, oil prices could be restrained or corrected. (asd)*
Source: Newsmaker.id
