Crude Oil Firms on U.S. and Iran Tensions

Crude oil futures inched higher during today’s Asian trade session. The price of oil is finding support from escalating geopolitical tensions in the Middle East and signs that the Organization of the Petroleum Exporting Countries (OPEC) will continue with its supply cut scheme for the remainder of the year.

Tensions between the United States and Iran are continuing to mount as U.S President Donald Trump has continued with his hawkish rhetoric against the Islamic regime in Iran. However, traders remain concerned over global economic growth as the trade war between the two largest economic superpowers continue. This is capping gains in the oil markets.

As of 1:20 am GMT, the international futures benchmark, Brent crude oil was up six cent to trade at $72.03 per barrel.

U.S. West Texas Intermediate (WTI) crude futures contract, for front end delivery, gained 12 cents to trade at $63.22 per barrel.

Traders Support Oil as Tensions in the Middle East could Disrupt Supply

Overnight, President Donald Trump reiterated hawkish comments on Iran. So far this week, to recap, the U.S. President tweeted a threatening comment that said that it will “be the end” of the Islamic Republic if Tehran wants a fight.

Since that tweet, President Donald Trump has ratcheted up the rhetoric. He said that any action from Iran “would be met with a great force”. Trump also said that “there are no talks going on” with the Iranian Islamic regime. Traders are worried that a conflict would hurt the supply of oil from the Middle East.

Iran, today, said that it would resist U.S. pressure. They will not negotiate under these circumstances.