Brent gains after Trump threatens to hit Iran hard
The front-month ICE Brent contract has gained by $1.13/bbl on the day, to trade at $92.37/bbl at 09.00 GMT.
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Upward pressure:
US President Donald Trump has once again drawn the market’s attention with his latest hardline comments, putting upward pressure on Brent crude’s price.
The statement came shortly after the US and Iran resumed direct exchange of fire for the first time in recent weeks.
Trump claimed that Washington is prepared to “smack” Iran, if it continues to target more US assets in the Middle East.
“Oil prices started the week stronger following the first military strikes between the US and Iran in a month,” two analysts from ING Bank noted.
Downward pressure:
While there is limited downward pressure on Brent’s price today, market analysts will have an eye out for the US commercial crude stocks data due later this week.
Commercial US crude oil inventories increased by 95,000 bbls to 429 million bbls in the week ending 21 August, according to data from the US Energy Information Administration (EIA).
A build in US crude stocks typically indicates lower demand for oil and can put some downward pressure on Brent's price.
By Aparupa Mazumder
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