During Tuesday’s trading on Asian markets, Brent crude futures rose by more than 2% after the U.S. carried out strikes against Iran. This led to increased market tension, as a peace agreement and the reopening of the Strait of Hormuz remain out of reach.
According to Reuters, Brent futures rose by $1.98, or 2.1%, to $98.12 per barrel in morning trading, after the previous session closed 7% lower. The price of West Texas Intermediate (WTI) crude stood at $91.79 per barrel, slightly above Monday’s closing price but 5% below Friday’s close. Trading was suspended on Monday due to Memorial Day in the U.S.
Although both contracts fell during the overnight session amid hopes for a peace deal, U.S. strikes on southern Iran and Israeli attacks on Hezbollah pushed Brent prices higher, widening the gap with WTI, noted Michael McCarthy, CEO of Moomoo Australia.
U.S. Secretary of State Marco Rubio stated that negotiations with Iran could last several days, dashing hopes for a quick resolution to the conflict. Since the start of the war, Iran has effectively halted nearly all energy shipments through the Strait of Hormuz, blocking about one-fifth of global oil and liquefied natural gas flows.
