Oil Steadies as Israel, Iran Agree to Halt Further Attacks
Summary
- Oil prices halted their recent climb and moved in a stable range after news that Israel and Iran agreed to stop further attacks.
- Industry participants said that even if a peace agreement is reached between the US and Iran, it would take considerable time for oil supply to normalize.
- Al Salazar said global oil prices could also rise into the triple digits given the decline in inventories.
Forecast Trend Report by Period
Oil prices stabilized after Israel and Iran agreed to halt further attacks, pausing a recent rally.
Bloomberg reported on June 8 that West Texas Intermediate traded above $91 a barrel, while Brent settled near $94.
The two countries had signaled they would refrain from additional strikes following their recent military confrontation, easing tensions in the Middle East.
Israeli Prime Minister Benjamin Netanyahu said Israel is suspending attacks on Iran for now, but would respond if further strikes occur. Iran is also reported to have adopted a similar stance.
The clash has also complicated negotiations aimed at ending the war in the Middle East. US President Donald Trump urged both sides to de-escalate and emphasized a diplomatic solution.
Still, the industry expects it would take significant time to restore normal oil supply even if the US and Iran reach a peace agreement. That is because mines in the Strait of Hormuz would need to be cleared, shut-in oil fields restarted and energy infrastructure repaired.
Al Salazar, head of oil and gas research at Enverus, said crude prices are now moving on geopolitical headlines. With inventories falling, oil could also climb into triple digits.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
