Brent gains amid US-Iran standoff

The front-month ICE Brent contract has gained by $0.98/bbl on the day, to trade at $91.90/bbl at 09.00 GMT.

IMAGE: Oil pumpjacks. Getty Images

Upward pressure:

Brent crude has moved higher for a fourth consecutive session, as ongoing uncertainty surrounding the US-Iran standoff continues to put upward pressure on prices.

US President Donald Trump has signalled that talks with Iran have ended and that additional sanctions on Tehran could be announced later this week.

The potential implications of this move for shipping through the Strait of Hormuz could be adverse, according to market analysts.

“Oil prices extended gains… as uncertainty over a resolution to the US-Iran conflict continued to support risk premiums,” two analysts from ING Bank noted.

Downward pressure:

While there are no major downward pressures acting on Brent’s price today, market analysts continue to closely monitor the situation in the Middle East.

The 60-day peace accord that Trump signed on 17 June effectively ended earlier this week. However, Iran said the agreement is not dead but in a “coma”, its state-owned news agency IRNA reported.

Tehran’s comments suggest it could come back to the negotiation table if Washington agrees to its demands.

By Aparupa Mazumder

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