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Brent struggles below $90 as US-Iran moves send mixed oil signals
Brent’s brief pop to $87.6 came as Washington expanded military actions for a fifth straight day, while it withdrew a proposed 20% fee on Hormuz shipping.
Brent crude held below $90 amid escalating US-Iran tensions, with prices briefly rising to $87.5 before losing momentum, according to Action Forex.
The market hesitation reflects mixed signals. The United States expanded its military campaign for a fifth straight day, targeting Iranian missile sites and coastal defences while keeping a naval blockade of Iranian ports, but it abandoned a proposed 20% Hormuz shipping fee after legal objections from the International Maritime Organization and opposition from the shipping industry.
Traders also appear to be waiting for a higher escalation threshold before pricing a sustained move higher. So far, strikes on missile batteries, coastal defences and naval assets have had only limited direct impact on oil production or exports.
Action Forex points to next potential trigger as the risk of attacks on energy infrastructure, after US President Donald Trump warned that the United States could strike Iranian power plants, bridges and other energy infrastructure next week if Tehran does not return to negotiations. On the Iranian side, Mohammad Baqer Qalibaf said Iran is in an “existential war” and argued Iran’s security depends on control of the Strait of Hormuz, keeping the risk of broader disruption to Gulf energy exports alive.
Latest closeWTI crude $80.18 ▲1.1%|Brent $85.39 ▲0.8%