Oil Prices Soar as the calm of conflict is increasing
With Brent crude futures jumping to approximately 103 per barrel, it has recovered its losses that it had earlier experienced due to the Trump saga indicating that the war against Iran might last a long time.The intraday low of the Brent crude futures was about 98 per barrel. Meanwhile, the benchmark West Texas Intermediate (WTI) of the U.S. soared more than 2 percent to almost 99 closer in the session.The price increase was after Trump announced it in an interview with a host in the Fox News Radio station, Brian Kilmeade.
The statement was a change to his previous comments this week, in which Trump had indicated that the war is pretty much over.At the same time, United States Defense Secretary Pete Hegseth, himself, in a briefing, said that the U.S. has already used the largest number of strikes so far against the Iranian targets.
Bitcoin Slips Back in the Oil Rally
Market analysts observe that long-term geopolitical tensions are likely to drive investors to commodities such as oil and heighten doubtfulness in financial markets, encompassing cryptocurrencies.Analysts Warn Oil Could Surge to Historic Highs.RBC Capital Markets warns that the oil prices might rise further in case the conflict persists.Head of global commodity strategy of the firm, Helima Croft, indicated that there are a number of things that indicate that the war may run into the next few months.Croft predicts that oil prices might be even higher than the record levels between the 2022 Russia-Ukraine crisis in case the war lasts several weeks more.With an extension of three to four weeks of the war, the prices may go beyond the highs of $128 per barrel witnessed in the Russia-Ukraine War.Nevertheless, a war that might take several months would push the oil prices to an even higher mark than in 2008 of 146 per barrel and would cause a wider dislocation in the global market.
