Brent Oil Prices Fall After White House Gives Time to Decide on Israel-Iran Conflict
Brent crude oil prices fell nearly $2 on Friday, reflecting volatile market sentiment as the White House delayed a decision on whether the United States should intervene in tensions between Israel and Iran. This raised concerns about the negative impact on global oil prices. Oil prices had risen nearly 3% earlier on Israeli strikes on nuclear-related targets in Iran and Iran’s response with missile and drone strikes.
Oil Market Update
Brent crude futures fell $1.89, or 2.4%, to $76.96 a barrel at 02:55 GMT. Still, prices were about 3.8% higher than they were at the start of the week. US demand also picked up slightly, with the July WTI contract up $0.53, or 0.7%, to $75.67 a barrel.
Oil prices have adjusted during the week but still maintained an upward trend due to political tensions and prolonged armed conflicts in the Middle East. The market is concerned that the war will further complicate the situation and disrupt the flow of oil through the Strait of Hormuz, where about 18 million to 21 million barrels of oil per day pass.
Market Highlights & Analysis
As investors await a final decision from the White House on whether the United States will send troops to the Middle East, experts say two-week deadlines are a common tactic of President Donald Trump. They are often missed, keeping oil prices high or rising sharply in the short term.
Oil prices spiked on concerns about further US intervention in the conflict, but comments from the White House suggest there is still time to cool things down, said Phil Flynn of The Price Futures Group.
Iran, a member of the Organization of the Petroleum Exporting Countries (OPEC), produces an average of 3.3 million barrels of oil per day, making it the third largest producer in the group. Oil flows through the Strait of Hormuz are a major source of supply, raising fears of disruptions to global supplies. These risks will further increase oil prices in the long term.
US Stock Market Reaction
U.S. stock futures were down slightly late Thursday, with the Dow Jones Industrial Average down more than 0.4 percent, while the S&P 500 and Nasdaq 100 both fell about 0.3 percent. The markets were closed for the Juneteenth holiday, reflecting investor caution amid global political turmoil.
Investors are also digesting remarks from Federal Reserve Chairman Jerome Powell. After the decision to keep interest rates unchanged, Powell said the U.S. is in no rush to cut rates, given upcoming economic data. Analysis from CME Group shows a higher likelihood of a rate cut at the September meeting.
Meanwhile, President Trump has criticized Powell, accusing the policy of keeping interest rates high has cost the US economy hundreds of billions of dollars. He also called Powell ‘one of the most stupid and destructive people in the administration.’
Source: https://tintucbitcoin.com/dau-giam-us-futures-chung-truoc-quyet-dinh-trump/
Thank you for reading this article!
Please Like, Comment and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
