West Texas Intermediate (WTI) crude oil prices rose nearly to $92 per barrel on Tuesday amid increased US military activity in southern Iran and ongoing peace negotiations that are causing concern among investors.
This is reported by Finway
WTI and Brent Price Dynamics
July futures for the US benchmark WTI traded at $91.73 per barrel. Meanwhile, July futures for the international benchmark Brent rose by 2%, reaching $98.26 per barrel during Asian trading.
“Brent reacts more directly to oil prices from the Middle East, so any threat to shipping in the Strait of Hormuz pushes them higher. WTI reflects US domestic supply more, and inventories have been rising for several weeks.”
Military Actions and Political Tension
US forces struck missile launch sites and vessels suspected of attempting to lay mines in southern Iran. US Central Command explained that these operations were aimed at protecting American troops stationed in the region.
President Donald Trump stated that negotiations with Tehran are progressing successfully, but warned that if dialogue fails, new military strikes could be possible. Meanwhile, Israeli Prime Minister Benjamin Netanyahu ordered his forces to intensify attacks against the Hezbollah group.
Over the past week, oil prices have dropped by more than 10% due to optimism regarding progress in negotiations between the US and Iran.