Iran-US Tensions Keep Oil Prices in Tight Grip

Crude oil prices have remained steady in recent weeks as investors focus on the ongoing stalemate between the US and Iran.

The Brent benchmark, used globally, ended the week at $88.28 a barrel, while West Texas Intermediate (WTI) settled at $83.45, both still over 30% below their highs for the year.

Despite this, key developments could push prices higher in the near term as the US and Iran have yet to ink any ceasefire after recent kinetic action.

The biggest risk facing crude oil prices is the fact that the US has leaned on economic sanctions rather than military action, with Operation Economic Outcast aiming to have all countries end ties with Iran.

However, analysts caution that Trump has no way to force the Iranians to the negotiating table as China and Russia continue to support Iran.

The UAE, a major trading partner, continues to do substantial business with Iran despite threats from Iran to wreck its economy if it cooperates with the US.