Oil prices fall despite escalating tensions in Persian Gulf
Photo: Oil prices fell despite the escalation in the Persian Gulf (Getty Images)
Oil prices fell on July 30, despite the escalation of attacks in the Persian Gulf. Investors’ attention shifted to supply flows through key chokepoints in the region, according to Reuters.
Today, Brent crude futures fell by 96 cents, or 1.06%, to $89.78 per barrel. US West Texas Intermediate (WTI) crude fell by 64 cents, or 0.76%, to $83.82 per barrel.
Oil prices surged on Wednesday, July 29, after US President Donald Trump threatened to launch a very strong strike against Iran following an Iranian missile attack on Tuesday against a US base in Jordan.
Also yesterday, the US and Saudi Arabia attacked Iranian-backed militias in Iraq.
This was the first time Saudi Arabia had publicly joined US airstrikes in response to drone attacks launched from Iraq against Saudi oil targets.
According to analysts, the market follows a certain pattern: geopolitical headlines in the media trigger rapid price increases, but these spikes are often short-lived, as actual oil supply flows and parallel diplomatic efforts typically determine how long these price increases will last.
Crude oil supplies continue to flow from the key Persian Gulf region, despite the near-complete closure of the Strait of Hormuz.
Middle East escalation
The latest escalation in the Middle East occurred after the Islamic Revolutionary Guard Corps attacked US troops in Jordan.
In response, the US, together with Saudi Arabia, launched strikes against Iranian-backed groups in Iraq, which, according to Washington, had been attempting to attack the kingdom’s oil infrastructure in recent days.
Following the attack on US military personnel, US President Donald Trump reacted harshly, promising to deliver a massive attack on Iran.
