Oil prices tad down amid uncertainty over US involvement in Israel-Iran conflict, stronger dollar
New Delhi: Global crude prices were trading marginally lower on Thursday morning amid a stronger dollar and uncertainty over the involvement of the US in the Israel-Iran conflict.
At 10.55 am, the August contract of Brent in the Intercontinental Exchange was trading at $76.61, 0.12% lower from its previous close but higher than the session's low of $75.78 per barrel.
Mixed signals from US President Donald Trump over the direct participation of the US in the ongoing war in West Asia are keeping traders on their toes, experts said.
After indicating through social media platforms on Tuesday that the US intends to join Israel in its conflict against Iran, Trump on Wednesday said the US may or may not join the war. According to a Sky News report, Trump told reporters: 'I may do it. I may not do it… Nobody knows what I'm going to do… Iran's got a lot of trouble, and they want to negotiate.'
Sriram Iyer, senior research analyst at Reliance Securities, said 'international crude prices started weaker on Thursday morning trading in Asia as markets awaited clarity on potential US involvement in the Israel-Iran conflict'.
Rahul Kalantri, vice president for commodities at Mehta Equities, said earlier gains had been reversed as traders awaited clarity on whether the US will join Israel in striking Iran.
'The ongoing conflict, now in its seventh day, continues to elevate risks. Despite the pullback, crude remains near five-month highs. Meanwhile, the Fed (US Federal Reserve) held rates steady and projected slower growth with elevated inflation for 2025, adding a potential tailwind for oil demand through improved growth prospects,' said Kalantri.
US Federal Reserve officials, however, have left the door open to cutting interest rates in the second half of the year, according to a Wall Street Journal report.
On Wednesday, crude oil prices remained elevated for a sixth consecutive day, moving close to a five-month high as traders worried about potential disruptions to Iran's crude oil exports amid the escalating Israel-Iran conflict.
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