Oil rebounds nearly 4 pc as US-Iran tensions fuel supply fears
Global oil prices rebounded nearly 4 per cent on Thursday after declining sharply in the previous session, as fresh US military strikes on Iran revived concerns over supply disruptions while uncertainty persisted over the future of the Strait of Hormuz.
New Delhi: Global oil prices rebounded nearly 4 per cent on Thursday after declining sharply in the previous session, as fresh US military strikes on Iran revived concerns over supply disruptions while uncertainty persisted over the future of the Strait of Hormuz.
International benchmark Brent crude rose 3.83 per cent to trade at $97.91 per barrel. Similarly, US benchmark West Texas Intermediate (WTI) traded around 4 per cent higher at nearly $92 per barrel, recovering part of Wednesday’s losses.
Reports suggested that US forces carried out defensive airstrikes on a military site in Iran and intercepted drones targeting a commercial vessel while also striking a launch unit. The latest military action comes as Washington and Tehran remain divided over efforts to reopen the Strait of Hormuz.
US President Donald Trump said he remained dissatisfied with the ongoing negotiations and rejected reports suggesting Tehran and Oman could jointly oversee the waterway.
“The strait’s going to be open to everybody,” Trump said, adding that the US would continue monitoring the route.
However, negotiations remain complicated by disagreements surrounding Iran’s nuclear programme and Tehran’s demand to retain control over Hormuz, which remains under restrictions imposed by both sides.
However, Trump reiterated that Washington would not agree to a weak deal and signalled that sanctions relief remained off the table, conflicting with Tehran’s demand for financial relief and an end to military attacks.
Oil prices fell sharply on Wednesday, sliding more than 5 per cent to their lowest levels in over a month as investors awaited clarity on a possible framework agreement aimed at ending the conflict in West Asia.
Brent crude settled down $5.29, or 5.31 per cent, at $94.29 a barrel, while US West Texas Intermediate (WTI) crude declined $5.21, or 5.55 per cent, to close at $88.68 a barrel.
In addition, both benchmarks touched their lowest levels in a month during the session and recorded their weakest settlements since April 17. The decline also erased Brent’s gains from Tuesday’s session.
