Oil Edges Up, Supported by Middle East Tensions
Oil prices edged higher during Monday's trading (August 17) as investors awaited new catalysts to determine market direction. Brent crude rose as much as 0.5%, nearing US$89 per barrel, before paring some of those gains.
Oil market sentiment remains supported by geopolitical uncertainty in the Middle East. Israel launched fresh strikes on southern Lebanon, reportedly killing 11 people, including a senior Hezbollah commander; this attack marked one of the deadliest escalations in recent months.
The market is also monitoring US plans to impose new sanctions on Iran. These tensions arise as a ceasefire period nears its end, while negotiations between Washington and Tehran regarding the Strait of Hormuz have yet to yield a clear resolution.
Meanwhile, global asset movements remain cautious. The US dollar weakened slightly, while Asian stock futures showed mixed results. Gold rose marginally—by about 0.1%—to around US$4,380 per troy ounce, bolstered by investor wariness regarding geopolitical risks and weak US consumer data.
Regarding market impact, oil prices are likely to remain volatile as long as uncertainty surrounding the Middle East and the Strait of Hormuz persists. Should US sanctions on Iran tighten or the conflict in Lebanon expand, Brent crude could retain its risk premium. Conversely, any progress toward opening the Strait of Hormuz could put downward pressure on prices due to expectations of improved supply. (asd)*
Source: Newsmaker.id