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Oil prices swing as US-Iran tensions shift in Strait of Hormuz

Brent crude fell about 9.0% to below $88 a barrel after traders priced in a pause in US strikes, easing fears of continued supply disruptions.

Reported · Written up by our desk · Energy

Oil prices moved sharply as market participants reassessed the risk of disruptions to energy flows tied to the Strait of Hormuz amid shifting US and Iran tensions. The flare up in concern followed a brief lull, renewing worry about how quickly the conflict could affect regional supply routes, The New York Times business coverage said.

Later, Guardian Economics reported that oil prices fell after the US paused strikes on Iran over the strait. Traders bet the pause could reduce the chance of escalation that might further restrict global supply.

In the same account, Brent crude dropped about 9.0% to below $88 a barrel, after having risen to around $100 last week. The report also linked the move to falling UK government bond yields as investors adjusted expectations around the energy outlook.

Latest closeWTI crude $81.23 ▼1.7%|Brent $85.92 ▼2.8%

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