Crude oil prices decreased at the beginning of the week. This drop occurred after Donald Trump, the President of the United States, announced that there are no plans for new attacks on Iran. This comes as new reports of attacks on tankers in the Strait of Hormuz and fresh attacks by Yemeni Houthis on Saudi targets have emerged.
Oil Price Status
At the time of writing this report, the price of Brent oil reached $98.28 per barrel, and the price of West Texas Intermediate (WTI) reached $91.24 per barrel. These figures indicate an increase in prices compared to the start of trading in Asia, although they have decreased compared to last Monday.
Market Analysis
Trump stated in an interview: "It depends on whether they will sign a strong agreement or not. The answer is very unlikely to be necessary." He also referred to the economic situation in Iran, saying: "Iran is a failing country. You saw the inflation rate of 301 percent this year. It is unlikely to be necessary. If it is necessary, I will do it, but we really hit them hard. I hit them very hard."
However, it seems that new U.S. attacks on Iran are currently not on the agenda, and this has contributed to the drop in oil prices. Market analysts are still waiting for signals of major policy changes following the midterm elections.
At the end of last week, Ole Hansen from Saxo Bank pointed out that "the prospect of the end of the crisis, along with improved oil flows from the Middle East, has increased hopes for reducing supply disruptions and high energy prices this year." These remarks came after a 13 percent drop in Brent and WTI oil prices last week.
However, reports of new attacks on tankers in the Strait of Hormuz indicate that the end of this crisis is still not in sight. The latest news from this front concerns the announcement by the Islamic Revolutionary Guard Corps of Iran, which reported a fire on three tankers in Hormuz on Sunday.
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