Iran Standoff Injects Uncertainty into Oil Markets
The latest development in the US-Iran standoff has injected uncertainty into oil markets, pushing WTI prices above $79.00 on Monday.
Iran's Supreme Leader Ayatollah Khamenei said there are no talks underway with the US, contradicting President Donald Trump's statement that negotiations were a justification for calling off attacks over the weekend.
The unconfirmed reports of drone strikes on US assets in Kuwait have heightened tensions, and traders are pricing in the geopolitical risk premium, providing some support to crude oil prices.
Mohsen Rezaee, a senior military adviser to Ayatollah Khamenei, warned that Tehran will not permit any shipping route through the strategic waterway other than the one designated by the Islamic Republic, putting US vessels and forces at risk of serious casualties.