(RTTNews) – Crude oil prices bounced back on Friday, recovering from two consecutive sessions of decline as US-Iran tensions escalate with the US targeting Iran’s civilian infrastructure. However, expectations of a solution through peace talks limited gains after both countries expressed readiness to negotiate.
WTI crude oil for August delivery was last seen trading at $82.60 a barrel, up $3.65 (or 4.62%).
Crude oil prices continued to rise today on supply concerns as the Strait of Hormuz remains closed, blocking all shipping movements and disrupting oil and energy trade in the Arabian Gulf.
On June 17, the US and Iran agreed to create a framework to stop their attacks and seek peaceful ways to end their hostilities, which led to the war on February 28.
As a result of the memorandum of understanding, Iran reopened the Strait of Hormuz. For its part, the US lifted its naval blockade of Iranian ports as well as sanctions on its oil exports.
Soon after the latest standoff, Iran announced the closure of the strait, while the US reimposed sanctions on Iranian oil exports.
US Central Command announced that US forces were prepared to escort ships safely through the strait. However, amid the intensified attacks last week, shipping traffic in the Strait of Hormuz has dropped significantly.
Against the backdrop of threats from sea mines, missile and drone attacks as well as uncertainty surrounding Iran’s toll, sailors avoided navigating near the area out of fear of risks to their lives and the safety of their vessels.
Today, for the sixth consecutive day, the US continued its attacks on Iran, targeting civilian and energy infrastructure, including an airport, a railway station and two bridges. The Iranian Energy Ministry asked its citizens to reduce electricity use after energy facilities were affected.
In retaliation, Iran launched widespread attacks on Qatar, Oman, Jordan, Bahrain and Kuwait. In Kuwait, Iranian attacks damaged a power plant and a desalination plant.
In his address at the White House, US President Donald Trump said the US was scoring major victories in Iran and remarked that results would be visible soon.
The White House said Trump is open to diplomacy, keeping alive hopes for a peaceful resolution to the crisis despite the intensifying conflict.
White House spokeswoman Carolyn Levitt acknowledged that the US is in talks with Iran.
Similarly, yesterday Iran’s parliamentary speaker Mohammad Bagher Ghalibaf said the door is open to talks and stressed that talks at this level do not mean surrender.
Experts believe the US is pursuing a mixed approach with measured military strikes on Iran while negotiating with the nation in parallel to pressuring Iran to accept a deal.
Iran had already threatened to intervene in the Red Sea shipping route (Bab al-Mandeb Strait) with the help of the Iran-backed Houthi militia if the US intensified its attacks on Iran.
Supply concerns and uncertainty over the US-Iran conflict provided support to crude oil prices by increasing its geopolitical risk premium.
According to a recent report from the International Energy Agency, global demand for crude oil is projected to decline by about 1 million barrels per day year-on-year in 2026.
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