(July 10) : Oil steadied at the end of a bumpy week as traders assessed the risk to flows from a flare-up in fighting between Iran and the US.
West Texas Intermediate traded near US$72 a barrel, after slumping by almost 2% on Thursday, as Brent ended above US$76. Following a spate of attacks on vessels in the Strait of Hormuz, US forces struck targets in the Islamic Republic over two days, prompting retaliatory strikes by Tehran on American bases in the region. Still, the two sides stopped short of a return to all-out war.
US Central Command said “Iran does not control the Strait of Hormuz,” according to a post on X. Since May, American forces helped more than 800 vessels transit the waterway, it added. The conduit links Persian Gulf producers to global markets, and its status has been contested by Tehran and Washington.
Oil remains higher for the week, with signs that observed transits through Hormuz have been slowed by the hostilities. Traders will be on alert for any resumption of talks between Washington and Tehran following the conclusion of the funeral of Iran’s slain Supreme Leader, Ayatollah Ali Khamenei.
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