Brent gains as CENTCOM eyes more ways to target Iran

The front-month ICE Brent contract has gained by $2.09/bbl on the day, to trade at $86.07/bbl at 09.00 GMT.

IMAGE: Flags of the US and Iran. Getty Images

Upward pressure:

Oil has reversed yesterday’s losses, as market participants grow sceptical of US President Donald Trump's peace rhetoric, and the likelihood of reaching an agreement anytime soon.

“We’ve been in this situation multiple times before, only to see things unravel,” two analysts from ING Bank noted.

The US Central Command (CENTCOM) is “looking for new creative and unconventional ways to pressure and punish Iran” as it continues to enforce the US blockade against Iran, CNN reported, citing an unnamed CENTCOM officer.

As of yesterday, CENTCOM has redirected 44 commercial vessels, disabled two, and boarded two, to prevent them from entering or departing Iranian ports, it said on social media platform X.

“With Iran denying that any talks are underway and Trump issuing warnings if no deal materialises, the backdrop clearly leaves ample room for a renewed escalation,” ING Bank’s analysts said.

Downward pressure:

While there are no major downward pressures acting on Brent today, market analysts will continue to keep a close eye on any signs of de-escalation in the Middle East and evolving developments in US-Iran diplomacy.

Brent’s price gains were capped “after the US and Iran signalled that discussions about restoring shipping through the Strait of Hormuz had resumed,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

By Aparupa Mazumder

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