Oil Prices Hold Near $90 Despite Gulf Incidents
Oil prices remain near $90 levels despite incidents in the Persian Gulf taking center stage. The Brent Crude is trading around $89 a barrel, while West Texas Intermediate (WTI) holds above $83 after gaining 11% over four sessions.
The US Energy Information Administration warned that oil disruptions due to the war could reach about 6,00,000 barrels per day through the end of 2027. However, Pakistani Defence Minister Khwaja Asif told Bloomberg News that the US and Iran are close to a 'sort of agreement', without elaborating on further details.
Tensions persist as a US Navy helicopter fired two Hellfire missiles at a Panama-flagged cargo vessel attempting to breach its blockade of Iranian ports. The UK Navy also reported an incident involving a container ship and military forces in the Gulf of Oman, while another cargo vessel was hit by an unknown projectile on Yemen's Red Sea coast.
Oil analyst Helge Andre Martinsen from DNB Bank ASA said 'it's hard to have any conviction' in the market due to its 'headline-driven' nature. Oil prices are still up over 40% for the year, despite cooling off from their late-April peak of around $125 a barrel for Brent.