Oil Prices Steady Amid Ongoing US-Iran Tensions
The global oil market has steadied after a three-day rally, with Brent crude hovering above $95/b and WTI near $91/b. The price stability comes as signs of continued energy flows through the Strait of Hormuz offset concerns over renewed US-Iran fighting.
Despite persistent security risks, the US military reportedly escorted 40 vessels carrying 18 million barrels of oil through Hormuz on Tuesday. However, neither the US nor Iran has shown willingness to restart negotiations, and the US is extending regional troop deployment, leaving the risk of prolonged disruption elevated.
The recent developments have also affected gold prices, which rebounded above $4,430/oz as President Trump signalled that renewed US military action against Iran was unlikely to be prolonged. The comments eased concerns about another sustained energy-price shock, which could intensify inflation and force the Fed to tighten policy more aggressively.