The North Sea crude, a benchmark in Europe, ended the session at the Intercontinental Exchange trading at 25 cents above the $76.45 closing figure from Tuesday’s transactions.
The fluctuation in the price per barrel occurs amidst the conflict between Israel and Iran, following six days of exchanges involving drones and ballistic missiles, alongside the potential for direct U.S. involvement and possible consequences for the region’s energy infrastructure and oil supply.
Donald Trump stated today that a military strike on Iran remains a possibility, affirming that “nobody knows” what his decision will be.
Crude is trading at five-month highs, having surged 4.4% in the last session, as investors fear increased tensions may prompt Iran to block the Strait of Hormuz, a crucial channel for oil transport, as one-fifth of the world’s oil supply passes through it.
However, analysts from Kpler suggested on Tuesday that this likelihood remains “low.”
In terms of impact on crude pricing, the geopolitical landscape overshadowed the Federal Reserve’s decision to maintain the benchmark interest rate between 4.25% and 4.50% while lowering the U.S. economic growth forecast for 2025 to 1.4%.
