Oil Prices Steady Amid US-Iran Tensions
Oil prices stabilized on Thursday as investors assessed the risk of war between the US and Iran. Brent crude futures for October delivery rose to $91.87 a barrel, while U.S. West Texas Intermediate crude futures for September slipped to $85.81 a barrel.
The market has been driven by sporadic attacks in the Middle East, according to Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment. 'Oil prices remained elevated as the market is supported by sporadic attacks in the Middle East but lacks fresh momentum without a major escalation,' he said.
The Strait of Hormuz has been a focal point for tensions between Iran and the US. The waterway's security was called into question after the UAE suspended all financial and economic transactions with Iran until further notice.
US President Donald Trump stated on Tuesday that no talks were taking place with Iran, while Iran claimed the Strait remained shut. Shipping through the Strait slowed down as most shipowners avoided the area due to unclear signaling on its reopening from a blockade put in place during the Iran war.