Oil Rises on Fears of US-Iran Escalation
Crude oil prices climbed toward $89 per barrel on Thursday, recouping some losses from the previous session following reports that the Trump administration had instructed the Pentagon to develop strike options against Iran that could be carried out before the midterm elections. The development goes against the widely held expectation that President Donald Trump would refrain from escalating tensions with Tehran ahead of the November polls. Meanwhile, oil producers in the Gulf of Mexico shut in more than 510,000 barrels per day of crude output, equivalent to around a quarter of the region’s production, due to Tropical Storm Isaias. In the Middle East, oil exports have been gradually returning to prewar levels in recent weeks, although attacks on tankers in the Strait of Hormuz continued to threaten supply. Iranian-backed Houthis also attacked targets in Saudi Arabia, leading to a fresh wave of strikes by the Riyadh-led coalition against positions in Yemen.
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Crude oil prices climbed toward $89 per barrel on Thursday, recouping some losses from the previous session following reports that the Trump administration had instructed the Pentagon to develop strike options against Iran that could be carried out before the midterm elections. The development goes against the widely held expectation that President Donald Trump would refrain from escalating tensions with Tehran ahead of the November polls. Meanwhile, oil producers in the Gulf of Mexico shut in more than 510,000 barrels per day of crude output, equivalent to around a quarter of the region’s production, due to Tropical Storm Isaias.
In the Middle East, oil exports have been gradually returning to prewar levels in recent weeks, although attacks on tankers in the Strait of Hormuz continued to threaten supply. Iranian-backed Houthis also attacked targets in Saudi Arabia, leading to a fresh wave of strikes by the Riyadh-led coalition against positions in Yemen.