WTI, Brent Rise as US-Iran Tensions Escalate
The crude oil complex rose on Tuesday as tensions between the US and Iran escalated. WTI settled at $96.05/bbl, up $3.02 from the previous day, while Brent settled at $101.21/bbl, up $3.29.
The increase in prices was due to ongoing military operations in the Middle East. The US struck Iranian tankers tied to the IRGC, and Iran retaliated with missile attacks on targets in Iraq. The IRGC also warned that oil tanker crews in Kuwaiti and Bahraini ports would be targeted.
Despite the tensions, US President Trump said he believes the war will end after the election, and oil prices will tumble lower as a result. However, his remarks had little impact on price action.
The EIA STEO reported a slight decrease in world oil demand to 102.6mln BPD from 102.7mln BPD.