Oil Prices Plummet Then Rebound as Iran Conflict Escalates

Oil prices plummeted initially as the US military campaign against Iran remained paused, but rebounded sharply after fresh fighting erupted and a US interception of an Iranian attempted surprise attack.

West Texas Intermediate (WTI) crude fell to USD 79.26 per barrel, its lowest level since July 16, while front-month Brent crude dropped to USD 84.10 per barrel.

The recent rebound in oil prices has led markets to price in a 35.8% probability of a 25bp rate hike at the July FOMC meeting.

Oil prices are highly sensitive to geopolitical events, and the ongoing conflict between the US and Iran has had a significant impact on crude markets.