Brent declines after Trump sets delayed timeline for resuming strikes on Iran
The front-month ICE Brent contract has lost by $1.12/bbl on the day, to trade at $103.06/bbl at 09.00 GMT.
IMAGE: Oil storage facility. Getty Images
Upward pressure:
Brent’s price is poised to end the week higher, with an increasing number of vessels coming under attack this week and Washington renewing its focus on Tehran’s shadow tanker fleet.
On Wednesday, an oil tanker was struck by multiple unknown projectiles within the Strait of Hormuz, resulting in casualties, the United Kingdom Maritime Trade Operations (UKMTO) agency reported.
“The pace of attacks on oil tankers in the Strait of Hormuz increased in recent days, with the UK Maritime Trade Operations reporting nine attacks in the waterway so far this month,” ANZ Bank’s senior commodity strategist Daniel Hynes said.
To add onto the pressure, the US Department of Treasury’s Office of Foreign Assets Control (OFAC) targeted 17 more shadow fleet vessels, that allegedly continue to evade US sanctions by transporting Iranian petroleum and petrochemicals.
Downward pressure:
US President Donald Trump said Washington would not launch any new attacks on Iran before the US midterm elections in November.
“We will not be attacking Iran at any time prior to the midterm elections to be held in the United States on November 3rd,” Trump wrote on social media platform Truth Social.
Brent crude’s price rose 6% in the previous session before giving back some of those gains following Trump’s statement, Hynes said.
Some improvement in oil exports out of the Middle East has also put downward pressure on Brent’s price today.
Kuwait is producing at 75% of pre-war levels, while Saudi Arabia has reduced the official selling price (OSP) of the Arab Light to Asia for November loadings. Iraq is hiring additional vessels to send oil through the Strait of Hormuz.
By Aparupa Mazumder
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