Oil Rises Amid Tensions Between the US and Iran

Tension has risen between the governments of the United States and Iran in recent weeks. Between sanctions by the White House to bring Iranian crude exports to zero, shipments from the US Navy to the waters of the Middle East and Washington’s accusations of naval attacks from the Islamic Republic against its allies, imply that the Trump Administration seeks to ignite a war with Iran.

However, according to the correspondent and analyst, Elijah Magnier, both countries would not want to embark on a conventional war. John Bolton, Trump’s national security adviser, seeks to force a negotiation of the Iranian nuclear agreement, while at the same time seeking a regime change under economic, commercial and financial coercion.

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The punitive measures against Iran are overheating the oil market, so that investors with a large exposure in the future market, see bullish tensions around the price in the short term and that the situation could worsen if Iran appeals to its “nuclear option “: the restriction of the strategic Strait of Hormuz, where roughly 20% of the world’s oil production passes.

Under these tensions, Brent crude rose $ 1.01 in recent days to close at $ 71 in the London market, while WTI crude in New York rose 64 cents to rise to $ 61.78. The bullish tendencies will surely continue with the war alarms between both countries.

 

Source URL: Misión Verdad
Translated by: EF/JRE

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