- BIST10011,430-2.49%
- USD49.45+0.05%
- EUR55.62+0.37%
- GOLD4,166.90-0.34%
- INTEREST37.00%-1.00
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- October 19, 202617°
- BIST10011,430-2.49%
- USD49.45+0.05%
- EUR55.62+0.37%
- GOLD4,166.90-0.34%
- INTEREST37.00%-1.00
- BITCOIN82,335+0.39%
- October 19, 202617°
Mutual attacks between US and Iran raise oil prices
Mutual attacks between the US and Iran over the weekend reduced hopes for a return to normal navigation in the Strait of Hormuz, pushing oil prices up. Brent crude rose 0.9 percent to $73.21.
War premium returns to oil prices
Oil prices in international markets have risen again amid escalating tension between the US and Iran over the weekend. The price of Brent crude increased by around 0.9 percent as mutual attacks by Iran and the US weakened expectations of a return to normal ship traffic in the Strait of Hormuz.
Brent crude futures for August delivery traded at $73.21 per barrel as of 03:30 GMT on the first trading day of the week. This figure was 127 cents above the level seen the day before the US and Israel launched a war against Iran on February 28.
Analyst’s ‘reality check’ comment
Fabien Yip, a market analyst at IG in Sydney, Australia, said the partial recovery in oil prices reflected a market that had gotten too carried away with ceasefire optimism. Yip noted that oil had almost fully priced out the war premium despite a memorandum of understanding with no implementation details and ongoing attacks.
The analyst stated that an attack on a commercial ship on Thursday served as a reality check, and that the mutual strikes over the weekend further reinforced this situation.
Mutual attacks and ceasefire talks
The US Central Command announced it carried out strikes against Iran on Friday and Saturday, citing Iran’s attacks on two commercial ships in the Strait of Hormuz, through which about a fifth of the world’s oil and liquefied natural gas trade passes in peacetime. Iran responded to these strikes by launching a series of missiles and drones at US military assets in Bahrain and Kuwait.
Late on Sunday, multiple media outlets reported, citing unnamed US officials, that Washington and Tehran had agreed to halt their attacks and resume negotiations to end the war. The Axios news site also reported, citing a senior unnamed US official, that the parties would hold talks in Doha, Qatar, on Tuesday. No statement has yet been issued from Iran regarding the reported ceasefire and planned talks.
US President Donald Trump and Iranian President Masoud Pezeshkian signed a memorandum of understanding on June 17 aimed at ending the war. However, the agreement has come under repeated strain due to renewed clashes and disagreements over the meaning of the text.
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