Oil Prices Poised for Weekly Gain Amid Ongoing Iran-US Tensions
Oil prices have stabilized but are poised for a weekly gain as tensions between Iran and the US remain high. The Brent crude benchmark is up 53 cents to $110.93 per barrel, while WTI futures dropped 56 cents to $104.51.
The Brent contract is on track for a 5.2% gain over the week, while WTI is expected to finish the week up 10.5%. The market remains volatile due to the ongoing conflict in the Strait of Hormuz and the risk of military strikes by the US against Iran.
Analysts warn that traders are taking a cautious approach, as any sudden easing of tensions could lead to a sharp decline in oil prices. Ole Hansen at Saxo Bank notes that 'the path of least resistance for crude oil prices remains upward as long as flows through the strait are restricted.'