Energy
Tuesday, April 16th, 2024 5:21 pm EDT
Key Points
- Crude oil futures gained slightly Tuesday amidst U.S. preparations for new sanctions against Iran, potentially targeting the country’s oil exports following Iran’s recent air assault against Israel.
- The West Texas Intermediate contract for May delivery rose by 27 cents to $85.68 a barrel, while the June Brent futures contract added 21 cents to reach $90.31 a barrel.
- Despite the tensions, the oil market’s response to Iran’s attack has been relatively muted, with fears of a wider conflict easing as the U.S. expects Israel’s response to be limited in scope. International efforts for de-escalation include consultations by U.S. Secretary of State Antony Blinken with various nations, emphasizing the avoidance of further conflict escalation.
Crude oil futures experienced a slight uptick on Tuesday amidst reports of potential new sanctions against Iran by the U.S., specifically targeting the country’s oil exports following its recent air assault against Israel. The West Texas Intermediate contract for May delivery rose by 27 cents to $85.68 a barrel, while the June Brent futures contract added 21 cents to reach $90.31 a barrel. Treasury Secretary Janet Yellen hinted at the possibility of further sanctions against Iran, emphasizing the ongoing focus on addressing this area. Despite the tensions, the oil market’s response to Iran’s attack has been relatively muted, with fears of a wider conflict easing as the U.S. anticipates Israel’s response to be limited in scope. Senior officials suggest a reduction in hostilities and short-term restraint, contributing to market stability. However, Israel’s wartime Cabinet convened to assess potential responses, indicating a situation still on edge. Israeli army chief Herzi Halevi affirmed that Iran would face consequences for its actions, expressing readiness to counter any threats. Meanwhile, international leaders have called for restraint, with President Biden reaffirming unwavering support for Israel but refraining from participating in offensive operations against Iran. Secretary of State Antony Blinken has engaged with various nations to advocate for de-escalation and prevent further conflict escalation. Despite Iran’s declaration of not seeking to expand the war, warnings of a stronger response if provoked by Israel add to the uncertainty surrounding the situation.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/04/16/oil-prices-fall-for-second-day-as-us-expects-limited-israel-response-to-iran-attack.html
