Brent crude prices eased from the multi-week highs reached during the previous session. The benchmark rose above $80 a barrel on Wednesday after the US President announced that the United States was ending its agreement with Iran, with military exchanges between the two countries continuing. This latest escalation underlines the complexity of the situation in the Persian Gulf and suggests that markets may have been overly optimistic about the swift normalisation of maritime traffic through the Strait of Hormuz and the full restoration of Gulf oil exports. What remains clear is that, until both parties reach a comprehensive peace agreement that brings the conflict to a definitive end, the potential for elevated volatility in oil prices will persist.. Against this backdrop, oil traders will remain alert to further developments, with prices likely to respond quickly to any fresh headlines.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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