- US President Donald Trump on Tuesday said that American forces were striking Iranian targets near the Strait of Hormuz, warning Tehran against retaliation.
- Trump warns Iran of 'much harder and higher' response if Tehran retaliates.
- Brent crude has gained by $1.13/bbl on the day, trading at $92.37/bbl at 09.00 GMT following Trump's threats.
- The US and Iran resumed direct exchange of fire for the first time in recent weeks, escalating tensions in the region.
- 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, according to analysts.
- Market analysts are monitoring US commercial crude stocks data due later this week, which could impact Brent's price.
US President Donald Trump announced military strikes against Iranian targets near the Strait of Hormuz, escalating tensions in the region. He warned Tehran of a 'much harder and higher' response if it retaliates, stating that Washington is prepared to 'smack' Iran for further attacks on US assets.125
The announcement came after the US and Iran resumed direct exchanges of fire, marking a significant increase in hostilities. Following Trump's comments, Brent crude prices rose by $1.13 per barrel, reaching $92.37 at 09:00 GMT, as market analysts noted the impact of military actions on oil prices.
Analysts from ING Bank observed that oil prices started the week stronger due to the renewed military engagement, while also noting that there is limited downward pressure on Brent's price. They are closely monitoring upcoming US commercial crude stocks data, which could indicate lower demand for oil and potentially affect prices.
According to the US Energy Information Administration (EIA), commercial US crude oil inventories increased by 95,000 barrels to 429 million barrels in the week ending August 21, suggesting a potential shift in market dynamics as demand fluctuates.
“The strikes mark the first direct US-Iran exchange of fire in a month, with ICE Brent rising $1.13 to $92.37 a barrel. Analysts at ING Bank note oil started the week stronger, while US crude stocks data due later this week could sway prices.”
