Oil prices holds above US$90 as Iran conflict revives supply fears
OIL prices held near elevated levels on Thursday after rising for a third consecutive session, as investors assessed renewed US-Iran hostilities and efforts to keep crude flowing through the strategic Strait of Hormuz. Brent crude held above US$95 a ...
Oil prices have maintained elevated levels, hovering above US$90 a barrel, amid heightened concerns over energy supplies following renewed tensions between the United States and Iran. Washington launched fresh strikes on Iranian targets near the strategic Strait of Hormuz, after a month of relative calm, while Iran retaliated with drones and missiles hitting US bases across the Middle East.
Despite the ongoing hostilities, crude shipments through the Strait of Hormuz averaged around eight million barrels per day. US crude remained above US$90, while Brent crude held steady above US$95. The renewed conflict also boosted crude prices, as investors assessed potential disruptions to energy supplies. US inventory data revealed a drop in crude stockpiles by 4.5 million barrels last week, marking the first decline since late July.
The US dollar is expected to stay firm over the coming months, before weakening in the coming year, according to a Reuters poll of foreign exchange strategists. The greenback, which has climbed about 1.5% this year, is influenced by geopolitical tensions, Fed policy expectations, and economic concerns. Interest-rate futures anticipate two Fed rate hikes this year to curb inflation, but currency strategists remain divided on the currency's future.
As the conflict persists, the exact driving force behind market movements in the coming months remains unclear.
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