Oil prices weakened in trading on Thursday (July 9), as the market assessed the impact of the latest US attack on Iran. The attack has the potential to hinder talks to end the war and fully reopen the Strait of Hormuz.
Brent crude fell US$1.03, or 1.32%, to US$76.99 per barrel at 07:49 GMT. Meanwhile, West Texas Intermediate (WTI) crude fell 88 cents, or 1.2%, to US$72.64 per barrel.
Brent and WTI had previously touched their highest levels since June 22 in trading on Wednesday. Both benchmark oil prices also rose more than US$1 in post-closing trading after the US military launched new attacks on Iran.
The escalation escalated after Iran retaliated by attacking Kuwait and Bahrain. This latest attack risks disrupting diplomatic efforts to end the war, especially after the US described its strikes as a response to attacks on three cargo ships in the Strait of Hormuz on Tuesday.
US President Donald Trump previously stated that the temporary ceasefire with Iran was “over.” However, Trump also said that Iran had contacted the US and wanted to reach a deal, suggesting the market still sees the potential for de-escalation.
From a market analyst perspective, market participants are currently reassessing the situation as oil flows through the Strait of Hormuz remain uncertain. KCM Trade analyst Tim Waterer believes the possibility of further steps to ease tensions is a factor holding back oil prices from rising further.
Source: Newsmaker.id