Oil prices slightly decreased as traders assessed the impact of renewed US strikes against Iran. The limited nature of these hostilities led to speculation that energy shipments through the Persian Gulf would continue their recent recovery. This assessment was shared by Leslie Palti-Guzman, founder of Energy Vista, who discussed the outlook for energy amid escalating tensions in the Middle East bloomberg.com.
This recent dip contrasts with a climb in oil prices just two days prior, on July 7, when West Texas Intermediate rose 2.9% to over $72 a barrel. That increase followed fresh US military air strikes in Iran and the revocation of a waiver allowing Iran to sell crude globally, after attacks on ships in the Strait of Hormuz bloomberg.com.
The fluctuating oil prices reflect ongoing uncertainty regarding the US-Iran situation, which has seen both escalations and hopes for de-escalation. Earlier, on June 30, oil had fallen as traders weighed the potential return of Middle East oil flows and warnings about a supply glut, particularly when shipping traffic through the Strait of Hormuz showed signs of picking up due to hopes for a US-Iran deal bloomberg.com. The overall narrative includes concerns about a potential return to war between the US and Iran and how the future of the Strait of Hormuz is testing Oman's balancing act bloomberg.com.
