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Business Times
a day ago
- Business
- Business Times
Oil settles lower as traders gauge Middle East tensions
[NEW YORK] Oil prices settled slightly lower on Thursday as traders booked profits from a 4 per cent rally in the prior session, driven by concerns that worsening tensions in the Middle East could cause supply disruptions. Brent crude futures settled down 41 cents, or 0.6 per cent, at US$69.36 a barrel. US West Texas Intermediate crude fell 11 cents, or 0.2 per cent, to settle at US$67.97 a barrel. US President Donald Trump on Thursday said an Israeli strike on Iran 'could very well happen,' but added that he would not call it imminent and prefers to avoid conflict. The US had earlier decided to move personnel out of the Middle East, sending both crude oil benchmarks up more than 4 per cent to their highest since early April on Wednesday. The surge put the market in overbought territory based on several technical indicators, so it was likely due for a brief correction, StoneX Energy analyst Alex Hodes said. US and Iranian officials were scheduled to hold a sixth round of talks on Tehran's uranium enrichment programme in Oman on Sunday, according to officials from both countries and their Omani mediators. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Trump has repeatedly threatened strikes against Iran if the nuclear talks fail to reach an agreement. Tehran, which asserts its nuclear activity is for peaceful purposes, has said it would retaliate against strikes by hitting US bases in the region. Rising tensions in the region have oil traders worried about possible supply disruptions. Britain's maritime agency warned on Wednesday that increased tensions in the Middle East may escalate military activity and impact shipping in critical waterways. 'For the oil market, the absolute nightmare is a closure of the Strait of Hormuz,' Arne Rasmussen, an analyst at Global Risk Management, said in a LinkedIn post. 'If Iran blocks this narrow chokepoint, it could affect up to 20% of global oil flows,' he added. JPMorgan said oil prices could surge to US$120 to US$130 a barrel if the Strait of Hormuz were to be shut, a scenario the bank considered to be severe but a low risk. Still, oil traders were growing cautious. 'We are still higher than two days ago as some short investors prefer to stay on the sidelines amid the uncertainty,' said Giovanni Staunovo, an analyst at UBS. US special envoy Steve Witkoff plans to meet Iranian Foreign Minister Abbas Araghchi in Oman on Sunday to discuss Iran's response to a US proposal for a deal. The UN nuclear watchdog's 35-nation Board of Governors declared Iran in breach of its non-proliferation obligations on Thursday for the first time in almost 20 years, raising the prospect of reporting it to the UN Security Council. REUTERS
Asharq Al-Awsat
2 days ago
- Business
- Asharq Al-Awsat
Oil Slips from Recent Highs as Market Assesses Middle East Tension
Oil prices fell on Thursday after sharp gains in the previous session as market participants assessed a US decision to move personnel from the Middle East ahead of talks with Iran over the latter's nuclear-related activity. Brent crude futures were down $1.31, or 1.9%, at $68.46 a barrel at 1202 GMT, while US West Texas Intermediate crude was $1.32, or 2%, lower at $66.83 a barrel, Reuters reported. A day earlier both Brent and WTI surged more than 4% to their highest since early April. US President Donald Trump said the US was moving personnel because the Middle East "could be a dangerous place". He also said the US would not allow Iran to have a nuclear weapon. Iran has said its nuclear activity is peaceful. Increased tension with Iran has raised the prospect of disruption to oil supplies. The sides are set to meet on Sunday. "Geopolitical risk premia tend to fade if there are no supply disruptions. We are still higher than two days ago as some short investors prefer to stay on the sidelines amid the uncertainty," UBS analyst Giovanni Staunovo said. On Wednesday Britain's maritime agency warned that increased tensions in the Middle East may lead to an escalation in military activity that could impact shipping in critical waterways. It advised vessels to use caution while travelling through the Gulf, the Gulf of Oman and the Straits of Hormuz, which all border Iran. "For the oil market, the absolute nightmare is a closure of the Strait of Hormuz," Global Risk Management analyst Arne Rasmussen said in a LinkedIn post. "If Iran blocks this narrow chokepoint, it could affect up to 20% of global oil flows," he added. JPMorgan said oil prices could surge to $120-$130 a barrel if the strait were to be shut, a scenario the bank considered to be severe but low-risk. The US meanwhile is preparing a partial evacuation of its Iraqi embassy and will allow military dependents to leave locations in the Middle East due to heightened security risk in the region, Reuters reported on Wednesday citing US and Iraqi sources. Iraq is the second-biggest crude producer after Saudi Arabia in the Organization of the Petroleum Exporting Countries. A senior Iraqi oil official told Reuters foreign energy firms continue operating normally in the country. Trump has repeatedly said the US would bomb Iran if the two countries cannot reach a deal regarding Iran's nuclear-related activity including uranium enrichment. Iran's Minister of Defense Aziz Nasirzadeh on Wednesday said Iran will strike US bases in the region if talks fail and if the US initiates conflict. US Special Envoy Steve Witkoff plans to meet Iranian Foreign Minister Abbas Araghchi in Oman on Sunday to discuss Iran's response to a US proposal for a deal. The UN nuclear watchdog's 35-nation Board of Governors declared Iran in breach of its non-proliferation obligations on Thursday for the first time in almost 20 years, raising the prospect of reporting it to the UN Security Council.
RTÉ News
2 days ago
- Business
- RTÉ News
Oil prices ease from more than two-month peak
Oil prices fell today after sharp gains in the previous session as market participants assessed a US decision to move personnel from the Middle East ahead of talks with Iran over the latter's nuclear-related activity. Brent crude futures were down $1.31, or 1.9%, at $68.46 a barrel at 1202 GMT, while US West Texas Intermediate crude was $1.32, or 2%, lower at $66.83 a barrel. A day earlier both Brent and WTI surged more than 4% to their highest since early April. US President Donald Trump said the US was moving personnel because the Middle East "could be a dangerous place". He also said the US would not allow Iran to have a nuclear weapon. Iran has said its nuclear activity is peaceful. Increased tension with Iran has raised the prospect of disruption to oil supplies. The sides are set to meet on Sunday. "Geopolitical risk premia tend to fade if there are no supply disruptions. We are still higher than two days ago as some short investors prefer to stay on the sidelines amid the uncertainty," UBS analyst Giovanni Staunovo said. On Wednesday Britain's maritime agency warned that increased tensions in the Middle East may lead to an escalation in military activity that could impact shipping in critical waterways. It advised vessels to use caution while travelling through the Gulf, the Gulf of Oman and the Straits of Hormuz, which all border Iran. "For the oil market, the absolute nightmare is a closure of the Strait of Hormuz," Global Risk Management analyst Arne Rasmussen said in a LinkedIn post. "If Iran blocks this narrow chokepoint, it could affect up to 20% of global oil flows," he added. JPMorgan said oil prices could surge to $120-$130 a barrel if the strait were to be shut, a scenario the bank considered to be severe but low-risk. The US meanwhile is preparing a partial evacuation of its Iraqi embassy and will allow military dependents to leave locations in the Middle East due to heightened security risk in the region, Reuters reported on Wednesday citing US and Iraqi sources. Iraq is the second-biggest crude producer after Saudi Arabia in the Organization of the Petroleum Exporting Countries. A senior Iraqi oil official told Reuters foreign energy firms continue operating normally in the country. Trump has repeatedly said the US would bomb Iran if the two countries cannot reach a deal regarding Iran's nuclear-related activity including uranium enrichment. Iran's Minister of Defense Aziz Nasirzadeh on Wednesday said Iran will strike US bases in the region if talks fail and if the US initiates conflict. US Special Envoy Steve Witkoff plans to meet Iranian Foreign Minister Abbas Araghchi in Oman on Sunday to discuss Iran's response to a US proposal for a deal. The UN nuclear watchdog's 35-nation Board of Governors declared Iran in breach of its non-proliferation obligations on Thursday for the first time in almost 20 years, raising the prospect of reporting it to the UN Security Council.
Globe and Mail
2 days ago
- Business
- Globe and Mail
Oil prices down slightly as market assesses U.S.-Iran tensions
Oil prices eased on Thursday, reversing gains made earlier in the Asian trading session, as market participants assessed a U.S. decision to move personnel from the Middle East ahead of talks with Iran over the latter's nuclear-related activity. Brent crude futures were down 73 U.S. cents, or 1.1 per cent, to US$69.04 a barrel at 5:01 a.m. ET, while U.S. West Texas Intermediate crude was 66 U.S. cents, or 1 per cent, lower at US$67.49 a barrel. A day earlier, both Brent and WTI surged more than 4 per cent to their highest since early April. U.S. President Donald Trump said the U.S. was moving personnel because the Middle East 'could be a dangerous place.' He also said the U.S. would not allow Iran to have a nuclear weapon. Iran has said its nuclear activity is peaceful. UN watchdog board finds Iran is not complying with nuclear obligations Increased tension with Iran has raised the prospect of disruption to oil supplies. The sides are set to meet on Sunday. 'For the oil market, the absolute nightmare is a closure of the Strait of Hormuz,' Global Risk Management analyst Arne Rasmussen said in a LinkedIn post. 'If Iran blocks this narrow chokepoint, it could affect up to 20% of global oil flows,' he added. On Wednesday, Britain's maritime agency warned that increased tensions in the region may lead to an escalation in military activity that could impact shipping in critical waterways. It advised vessels to use caution while travelling through the Gulf, the Gulf of Oman and the Straits of Hormuz, which all border Iran. The U.S., meanwhile, is preparing a partial evacuation of its Iraqi embassy and will allow military dependents to leave locations in the Middle East due to heightened security risk in the region, Reuters reported on Wednesday, citing U.S. and Iraqi sources. Iraq is the second-biggest crude producer after Saudi Arabia in the Organization of the Petroleum Exporting Countries. Military dependents can also leave Bahrain, a U.S. official said. Prices weakened having hit key technical resistance levels during Wednesday's rally, plus some market participants are betting on Sunday's U.S.-Iran meeting resulting in reduced tension, said OANDA senior market analyst Kelvin Wong. Trump has repeatedly said the U.S. would bomb Iran if the two countries cannot reach a deal regarding Iran's nuclear-related activity including uranium enrichment. Iran's Minister of Defense Aziz Nasirzadeh on Wednesday said Iran will strike U.S. bases in the region if talks fail and if the U.S. initiates conflict. U.S. Special Envoy Steve Witkoff plans to meet Iranian Foreign Minister Abbas Araghchi in Oman on Sunday to discuss Iran's response to a U.S. proposal for a deal. The U.N. nuclear watchdog's 35-nation Board of Governors declared Iran in breach of its non-proliferation obligations on Thursday for the first time in almost 20 years, raising the prospect of reporting it to the U.N. Security Council.
Zawya
2 days ago
- Business
- Zawya
Oil prices ease as market assesses Middle East tension
LONDON: Oil prices eased on Thursday, reversing gains made earlier in the Asian trading session, as market participants assessed a U.S. decision to move personnel from the Middle East ahead of talks with Iran over the latter's nuclear-related activity. Brent crude futures were down 73 cents, or 1.1%, to $69.04 a barrel at 0901 GMT, while U.S. West Texas Intermediate crude was 66 cents, or 1%, lower at $67.49 a barrel. A day earlier, both Brent and WTI surged more than 4% to their highest since early April. U.S. President Donald Trump said the U.S. was moving personnel because the Middle East "could be a dangerous place". He also said the U.S. would not allow Iran to have a nuclear weapon. Iran has said its nuclear activity is peaceful. Increased tension with Iran has raised the prospect of disruption to oil supplies. The sides are set to meet on Sunday. "For the oil market, the absolute nightmare is a closure of the Strait of Hormuz," Global Risk Management analyst Arne Rasmussen said in a LinkedIn post. "If Iran blocks this narrow chokepoint, it could affect up to 20% of global oil flows," he added. On Wednesday, Britain's maritime agency warned that increased tensions in the region may lead to an escalation in military activity that could impact shipping in critical waterways. It advised vessels to use caution while travelling through the Gulf, the Gulf of Oman and the Straits of Hormuz, which all border Iran. The U.S., meanwhile, is preparing a partial evacuation of its Iraqi embassy and will allow military dependents to leave locations in the Middle East due to heightened security risk in the region, Reuters reported on Wednesday citing U.S. and Iraqi sources. Iraq is the second-biggest crude producer after Saudi Arabia in the Organization of the Petroleum Exporting Countries. Military dependents can also leave Bahrain, a U.S. official said. Prices weakened having hit key technical resistance levels during Wednesday's rally, plus some market participants are betting on Sunday's U.S.-Iran meeting resulting in reduced tension, said OANDA senior market analyst Kelvin Wong. Trump has repeatedly said the U.S. would bomb Iran if the two countries cannot reach a deal regarding Iran's nuclear-related activity including uranium enrichment. Iran's Minister of Defense Aziz Nasirzadeh on Wednesday said Iran will strike U.S. bases in the region if talks fail and if the U.S. initiates conflict. U.S. Special Envoy Steve Witkoff plans to meet Iranian Foreign Minister Abbas Araghchi in Oman on Sunday to discuss Iran's response to a U.S. proposal for a deal. The U.N. nuclear watchdog's 35-nation Board of Governors declared Iran in breach of its non-proliferation obligations on Thursday for the first time in almost 20 years, raising the prospect of reporting it to the U.N. Security Council. (Additional reporting by Emily Chow in Singapore; Editing by Sonali Paul, Christopher Cushing and Sharon Singleton)
