Crude Oil Prices Consolidate Amid US-Iran Tensions

Crude oil prices are experiencing mild pressure as they consolidate below Thursday's 1-month high. This comes after comments from Iranian President Masoud Pezeshkian, who said it would be better to end the war with dignity.

The US-Iran conflict continues to weigh on crude prices, with President Trump threatening Iran and its trading partners with economic isolation. The administration plans to give details on their plans to isolate Iran's economy in a press conference on Monday.

Despite this, some factors are supporting crude prices. For example, the International Energy Agency (IEA) reported that global oil supply will worsen due to ongoing disruptions from the US-Iran war and high prices. Additionally, Ukraine has intensified drone attacks on Russian oil infrastructure, knocking Russia's crude production in July to 8.89 million bpd.

OPEC delegates have approved a +188,000 bpd increase in crude production for September, which might be difficult to achieve amid renewed US-Iran military attacks in the region.