The North Sea crude, a European benchmark, concluded the session at the Intercontinental Exchange 41 cents below the $69.77 mark reached at the close of trading on Wednesday.
Brent crude declined as investors assess escalating tensions in the Middle East and their potential impact on oil supply.
The price surged sharply (4.34%) on Wednesday following the announcement of an agreement between China and the U.S. on tariffs, Washington’s decision to withdraw part of its staff from the embassy in Iraq, and advisories warning Americans against traveling to Iraq amid escalating tensions with Iran.
Today, Donald Trump mentioned the possibility of an Israeli attack on Iranian nuclear facilities, noting it was not “imminent” in his view.
Amid this situation, Global Risk Management’s Chief Analyst, Arne Rasmussen, remarked on LinkedIn: “The key question is how Iran can respond?”
He added, “It is clear that U.S. embassies and bases in the region are potential targets. For the oil market, the absolute nightmare is the closure of the Strait of Hormuz. If Iran blocks this strait, it could affect up to 20% of the world’s oil flow.”
This development occurs in the context of ongoing negotiations between Washington and Tehran over Iran’s nuclear program, which are set to continue this Sunday in Oman’s capital, Muscat, marking the sixth meeting between the parties.
