Brent edges higher amid fresh US strikes in Iran

The front-month ICE Brent contract has inched up by $0.14/bbl on the day, to trade at $96.41/bbl at 09.00 GMT.

IMAGE: Getty Images

Upward pressure:

Oil prices moved higher after the US military launched fresh strikes in Iran, targeting a military site that officials believed posed a threat to US forces and commercial maritime traffic in the Strait of Hormuz, according to Reuters citing a US official.

“Crude ticks higher as US strikes Iran again,” remarked VANDA Insights founder Vandana Hari.

Iran's Revolutionary Guards said they had targeted a US airbase in response to a US attack in the port city of Bandar Abbas, Reuters reported.

The latest flare-up in the Middle East has added further upward pressure on Brent futures.

Meanwhile, US crude oil inventories fell by 2.8 million bbls in the week ending 22 May, according to estimates from the American Petroleum Institute (API) cited by Trading Economics.

A draw in US crude stocks could signal stronger oil demand and lend additional support to Brent prices.

Downward pressure:

Market focus shifted from concerns over escalating Middle East hostilities to optimism surrounding a potential US-Iran peace deal, putting some downward pressure on oil prices.

“Crude oil prices sold off, as markets became increasingly convinced that a US-Iran deal was imminent,” said ANZ Bank senior commodity strategist Daniel Hynes.

By Tuhin Roy

Please get in touch with comments or additional info to news@engine.online