U.S. Airstrikes on Iran Yet Oil Prices Fall... Market Watches for Real Supply Disruptions

JH Kim

Summary

It was reported that international oil prices, which had surged at one point due to news of U.S. airstrikes on Iran, turned downward again as no real supply disruption was confirmed.
Market experts said the situation in the Middle East and whether there are actual oil supply disruptions need to be closely monitored.
Whether the Strait of Hormuz is blocked in the future is expected to act as a key variable for the movement of oil prices.

According to CNN on the 23rd (local time), international oil prices, which had soared at one point due to news of U.S. airstrikes on Iran, have turned downward again.

As of 10:40 a.m. (local time) that day, the price of West Texas Intermediate (WTI) in the U.S. fell by about 1% per barrel to stand at $73.15.

The previous day, WTI had surged by as much as 6.2% during intraday trading, rising to $78.40, but later gave up all those gains. Brent Crude also showed a decline of about 1%.

Previously, the market had soared on concerns over supply disruptions due to heightened tensions in the Middle East following the U.S. airstrikes on Iran, but as no substantial disruption was confirmed, it is analyzed that profit-taking orders emerged.

Donald Trump, the U.S. President, also stated on Truth Social, "Everyone needs to lower oil prices. Watching. Do not fall for the enemy's strategy."

Market experts say that, for now, all eyes are keenly watching the situation in the Middle East.

Bob McNally, CEO of Rapidan Energy Group, said in an interview with CNN, "Traders have witnessed several instances when geopolitical instability originating from the Middle East did not actually lead to supply disruptions," and diagnosed, "If there is no real disruption in oil production or logistics flows in the Gulf region, the surge in oil prices will be limited."

Meanwhile, whether the Strait of Hormuz—the world’s most vital oil maritime chokepoint through which about 20 million barrels flow daily—will actually be blocked, is expected to become the key variable for future oil price trends.