Oil Rebounds as Fresh US Strikes on Iran Rekindle Middle East Tensions
Summary
- Reports of fresh US strikes on Iran helped lift international oil prices, with WTI trading near $90 a barrel.
- Rising tensions in the Middle East, triggered by US defensive airstrikes on Iran, are putting upward pressure on global crude prices.
- Markets are concerned that the latest strikes could weigh on the fragile ceasefire between Israel and Iran and on broader Middle East peace talks.
Forecast Trend Report by Period
Oil rebounded after reports of fresh US airstrikes on Iran renewed tensions in the Middle East.
According to Bloomberg on June 9, West Texas Intermediate rose nearly 2% intraday to trade near $90 a barrel. Crude had dropped 3.4% a day earlier, but renewed tensions in the region put prices under upward pressure.
The rebound followed additional US strikes on Iran. US Central Command said it carried out defensive airstrikes on Iran at the direction of President Donald Trump.
CENTCOM said the operation was in response to the recent downing of a US Army Apache helicopter. It described the strikes as a proportional response to an unprovoked Iranian attack.
Iran's state-run IRIB reported that Qeshm Island in the Strait of Hormuz was hit and that at least six explosions occurred.
Earlier, Trump said a US military Apache helicopter patrolling over the Strait of Hormuz had come under attack from Iran and signaled retaliation.
Iranian Foreign Minister Abbas Araghchi said Iran's military would respond to any attack or threat.
Markets are concerned that the latest strikes could weigh on the fragile ceasefire between Israel and Iran and on broader Middle East peace talks.
Saul Kavonic, a senior energy analyst at MST Marquee, said the strikes underscored how far the US and Iran remain from an agreement. Still, markets continue to place greater weight on the prospects for negotiations than on the risk of all-out war because the response remained limited.
