Oil Prices Steady Amid Ongoing US-Iran Tensions
Oil prices remained steady on Wednesday after climbing to over one-month highs earlier in the session. The price of Brent crude futures rose by 9 cents, or 0.1%, to $94.74 a barrel, while U.S. West Texas Intermediate crude futures lost 19 cents, or 0.21%, to $90.03.
The market is facing a 'binary risk' according to Saxo Bank's head of commodity strategy Ole Hansen. An announcement that a deal has been reached could send prices tumbling, while any escalation would further undermine the prospect of a peace deal.
The U.S. and Iran were back on a war footing after the most significant exchange of fire in weeks. The Islamic Revolutionary Guard Corps said the U.S. attacks would further restrict traffic through the Strait of Hormuz, a critical waterway that carried about one-fifth of the global oil consumed before the conflict.