Oil prices began to decline despite the conflict between Israel and Iran
17 June 10:17
Oil prices began to decline on Tuesday despite fears of an escalation in the conflict between Iran and Israel. However, the risks of disrupting oil supplies from the key oil-producing region of the Middle East have not disappeared, "Komersant Ukrainian" reports citing Reuters.
According to OilPrice.com, futures for Brent crude oil fell 38 cents, or 0.52%, to $72.85 per barrel as of 10:08 Kyiv time. U.S. West Texas Intermediate crude fell 31 cents, or 0.43%, to $71.46. Both contracts were rising earlier in the trading session.
On Monday, oil prices closed more than 1% lower on hopes that the conflict might subside following media reports that Iran is seeking to end hostilities.
However, concerns increased after U.S. President Donald Trump called on “everyone” to evacuate the Iranian capital of Tehran in a post on social media.
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On Tuesday, the fighting continued, with Iranian media reporting explosions and intense air defense fire in Tehran. In Israel, air raid sirens sounded in Tel Aviv in response to Iranian missiles.
“The conflict between Iran and Israel is still fresh and escalating, and investor sentiment may still keep ‘war risks’ in mind. The additional volatility and caution ahead of the Fed’s policy decision is ensuring an even faster reaction of oil prices,”
– priyanka Sachdeva, senior market analyst at Phillip Nova, said in an email.
Iran is the third largest producer among OPEC members. The concern is that the fighting could disrupt its oil supply and drive up prices.
US media reported on Monday evening that Trump is proposing to resume talks with Iran on a nuclear deal, even as other reports of a shipping incident in the Gulf of Oman highlight the risks to companies that transport oil and fuel in the region.
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