Oil Falls as Israel-Iran Ceasefire Remains Limited on Hormuz Supply
Oil prices fell on Tuesday (June 9), erasing the previous session's gains, after Iran and Israel announced a halt to attacks on each other following a call from US President Donald Trump. However, both sides warned that attacks could resume if conditions changed.
Brent crude futures fell $1.65, or 1.75%, to $92.60 per barrel, while West Texas Intermediate (WTI) fell $2.19, or 2.4%, to $89.11 per barrel. Monday's 5% price increase was triggered by Israel's attack on Iran and clashes in Lebanon over the weekend.
PVM Oil Associates expert Tamas Varga emphasized that despite the temporary easing of tensions, global oil stocks remain low. If inventory data shows a significant shortage, Brent prices could again surpass $100 per barrel. Supply also remains limited because Iran is blocking most shipping through the Strait of Hormuz, while the US has imposed a blockade on Iranian ports.
Commerzbank noted that hopes for a quick agreement that could restore oil flows through Hormuz have been set back, indicating that market volatility remains high.
Source: Newsmaker.id