US-Iran Tensions Keep Oil Prices on Edge
Oil prices remain volatile as concerns over US-Iran tensions and shipping disruptions in the Strait of Hormuz persist. Brent crude futures rose by 25 cents to $91.87 a barrel, while WTI crude slipped by 2 cents to $85.81. The recent rally reflects the market's response to geopolitical developments in the Middle East.
According to Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, 'the market is supported by sporadic attacks in the Middle East but lacks fresh momentum without a major escalation.'
The Strait of Hormuz remains a critical factor influencing crude prices, with Washington and Tehran issuing conflicting statements about its status. The uncertainty has led to cautious tanker movements, with shipping traffic through the waterway slowing.