US-Iran Tensions Spark Oil Price Volatility
US-Iran tensions continue to simmer, with experts warning that the situation is far from resolved. The latest flare-up between the two nations has reignited concerns over regional supply risks, particularly in the Strait of Hormuz. Despite US President Donald Trump's assertion that renewed attacks won't last 'too long', analysts are skeptical about a swift normalization of the situation.
As tensions escalate, West Texas Intermediate (WTI) oil futures on NYMEX dropped to near $88.65 during the European trading session on Friday. The price has struggled to move above the $90 mark, weighed down by concerns over further military aggression between the US and Iran.
Strategists at Commerzbank noted that the situation remains 'highly fluid', with little evidence of a durable de-escalation. Analysts at TD Securities argued that renewed hostilities highlight the fragility of any non-concrete deal or short-term de-escalation, with Iran's control over the Strait keeping the probability of escalation high.