Oil Rally Pauses After 9% Three-Day Surge as Trump Says Iran Strikes Won’t Last Long
Summary
- International oil prices surged 9% over three days as military clashes between the U.S. and Iran escalated, before losing momentum after comments from President Trump.
- An expert said the latest rise in Middle East tensions would support oil prices, but crude could fall quickly if the U.S. and Iran find an off-ramp and resume peace talks.
- International oil prices have risen more than 30% since the war began, and prices of petroleum products such as diesel have climbed even more sharply than crude amid Middle East supply concerns and the Russia-Ukraine war.
Forecast Trend Report by Period
International oil prices paused after surging 9% over three days as military clashes between the U.S. and Iran rattled markets. Gains lost momentum after President Donald Trump said the attacks on Iran would not last long.
West Texas Intermediate traded around $91 a barrel on September 2, Bloomberg reported. WTI has climbed about 9% over the past three trading sessions. Brent closed below $96 a barrel the previous day.
Trump’s comments helped limit further gains in crude. Asked how long U.S. airstrikes on Iran would continue, he said, “I don’t think it’s going to take that long.” He also said the U.S. was prepared to strike again, leaving open the possibility of additional attacks.
The U.S. recently resumed attacks on Iran after weeks of relative calm. Iran retaliated by launching missiles and drones at U.S. military bases in the Middle East. The renewed fighting has again fueled concern over supply disruptions through the Strait of Hormuz, a key route for global oil shipments.
Trump also repeated his earlier claim that the U.S. controls the Strait of Hormuz. Some crude is being shipped out of the Persian Gulf on tankers that have turned off their tracking devices, and the latest clashes have deepened fears that transport disruptions could worsen.
“The latest flare-up in tensions will support oil prices,” said Dennis Kissler, senior vice president at BOK Financial Securities. Still, he added that investors should keep in mind that both the U.S. and Iran are looking for an exit. If peace talks resume, oil prices could fall quickly.
Whether the two countries will return to negotiations remains unclear. The U.S. and Iran have shown no sign of going back to the table since a temporary peace agreement reached in Islamabad in June collapsed.
International oil prices have risen more than 30% since the war began in late February. Supply risks in the Middle East, along with the Russia-Ukraine war, have pushed prices for petroleum products such as diesel up even more sharply than crude.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.