New Delhi, June 17 (IANS) Oil prices rose sharply on Tuesday after US President Donald Trump called for the evacuation of Tehran, raising fears of a wider conflict in the Middle East.
The prices jumped initially but later eased as the market stayed cautious about any major disruption in oil supplies.
Brent crude oil went up by as much as 2.2 per cent before falling slightly to trade just above $73 a barrel.
West Texas Intermediate (WTI) also rose and hovered near $72. This comes after oil prices had dropped on Monday when there were signs that Iran was trying to calm tensions.
However, Israel has continued its military strikes, which began last Friday, targeting key nuclear sites in Iran.
The oil market is closely watching the Strait of Hormuz — a narrow waterway that plays a crucial role in global oil trade.
Around 20 per cent of the world’s daily oil supply passes through this route. Maritime security company Ambrey reported a possible incident near the area on Tuesday, although details were not clear.
So far, the impact of the conflict has mostly been seen in the shipping sector. According to the UK Navy, ships passing through the Strait of Hormuz and the Persian Gulf are facing issues with navigation signals.
Many shipping companies are now hesitant to take bookings in the region due to safety concerns. However, Iran’s infrastructure for exporting oil has not been damaged yet.
Even with some gains being reversed, oil prices remain higher than they were before the current conflict began.
This has led to record levels of hedging by oil producers and a rise in trading of oil futures and options.
Investment bank Morgan Stanley has also raised its oil price forecasts — citing higher risks because of the conflict.
Meanwhile, the White House is reportedly discussing the possibility of meeting Iranian officials this week to talk about reviving the nuclear deal and ending the ongoing war with Israel, according to a report by Axios.
Israel, on the other hand, claimed that it has taken control over large parts of Iran’s airspace and has heavily damaged its missile and nuclear facilities since launching its assault on Friday.
This has sparked fears of a broader war in the region, which produces nearly one-third of the world’s oil.
–IANS
pk/rad
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by BhaskarLive.in and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of BhaskarLive.in We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, BhaskarLive.in takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
