Trump Hints at Attack, Oil Prices Continue to Rise This Week
Oil is on track for a third weekly gain, with President Donald Trump set to decide within two weeks whether to strike Iran.
August West Texas Intermediate held near $74 a barrel from Wednesday’s close, while Brent settled below $79 on Thursday. White House spokeswoman Karoline Leavitt told reporters that a decision would take time because of the “great chance of negotiations” with Iran, according to a dictated message from Trump. She declined to elaborate on a timeline.
It’s been a volatile week for the oil market, with futures swinging around $8, volatility soaring, time frames widening significantly, and options at one stage more bullish than they were after Russia’s invasion of Ukraine.
Israel continues to attack Iran’s nuclear sites, but for now the country’s crude-exporting infrastructure remains unscathed. There are signs, however, that OPEC producers are racing to get their oil to the rest of the world, as storage tanks at the key Kharg Island terminal fill with crude.
The biggest concern for oil markets centers on the Strait of Hormuz, but so far there have been no signs that Tehran is trying to disrupt shipping through the narrow waterway at the entrance to the Persian Gulf. About a fifth of the world’s crude output passes through the strait.
WTI for August delivery was little changed at $73.45 a barrel from Wednesday’s settlement at 7:38 a.m. in Singapore.
There was no settlement on Thursday because of a U.S. holiday.
The front-month July contract, which expires Friday, rose to near $76 a barrel.
Brent for August settlement closed 2.8% higher at $78.85 a barrel on Thursday.
Source: Bloomberg
