Oil Rises Despite Trump Saying Iran Wants a Deal as Middle East Tensions Re-Emerge
Summary
- Military clashes between the US and Iran drove up global oil prices, with markets placing greater weight on the risk of supply disruptions.
- Brent crude and WTI rose 2.8%% and 3.4%%, respectively, recovering part of their recent losses.
- Rising oil prices and geopolitical risk could add to inflation pressure and uncertainty over the rate path, weighing on risk sentiment.
Forecast Trend Report by Period
Oil prices rose even after President Donald Trump said Iran wants a deal, as markets focused more on the risk of supply disruptions after military tensions between the US and Iran flared again over the weekend.
Walter Bloomberg, an overseas markets news account, posted on X on June 1 that crude advanced as the US-Iran clash renewed geopolitical tensions.
Brent crude rose 2.8% to $93.63 a barrel, while West Texas Intermediate gained 3.4% to $90.29. Brent had slumped 19% in May, and the latest advance recouped part of that decline.
The move higher followed reports of military conflict between the US and Iran. Walter Bloomberg said the US struck Iranian radar and drone command facilities after Iran shot down an American drone. Kuwait also reported missile and drone attacks.
Trump said Iran "really wants to make a deal." He also indicated that negotiations could prevent the country from obtaining nuclear weapons.
Even so, markets were more sensitive to the risk of escalating tensions across the Middle East. The pace at which regional supply returns to the market will depend on whether tensions ease or widen into a broader conflict.
In crypto markets, rising oil prices and geopolitical risks could also weigh on appetite for risk assets. Higher energy costs can add to inflation pressure and increase uncertainty over the path of interest rates.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
