- Fears that the US might get involved in the Middle East war are buoying Oil price.
- Crude Oil futures are rallying on concerns about supply disruptions.
- Iran’s ambassador to the UN has vowed a strong response if the US gets involved in the war.
Verbal escalation between US President Donald Trump and Iranian officials has boosted fears of a wider regional war in the Middle East, with the involvement of the US, which is underpinning Crude Oil prices near four-month highs.
The price of the barrel of the benchmark US West Texas Intermediate has returned above $73.00 during the European morning session, with one-month Nymex Crude Oil futures reaching the 75.00 level.
Oil price surged beyond 20% over the previous two weeks, extending its recovery from early May lows at $55 to four-month highs at $75.00. Investors’ concerns that Iran might block the crucial Strait of Hormuz and drive prices well above $100 are underpinning Oil’s rally.
Oil pice appreciates as verbal tensions between the US and Iran escalate
The Iranian ambassador to the United Nations, warning against the consequences of a direct intervention of the US in the conflict, has triggered a risk-averse reaction, and a rebound in Oil prices.
Ali Bahreini accused the US of being complicit in Israel’s aggression and affirmed that Tehran will respond “strongly, proportionally and appropriately” to any direct involvement of the US in the conflict.
These comments come after Trump demanded an unconditional surrender of the Iranian Government and threatened to kill its Supreme Leader Ali Khamenei, after hastily leaving the G7 summit to meet the National Security Council.
