Oil steadied after surging more than 3% on Thursday as traders weighed US President Donald Trump's threats against Iran, and how a potential escalation in hostilities could impact flows from the Middle East.
West Texas Intermediate was near $66 a barrel after a three-day rally — aided in part by a weaker dollar — while Brent settled above $70 for the first time since July. Trump warned of military strikes if Iran doesn't make a nuclear deal, injecting a fresh risk premium into prices.
Market concerns are primarily focused on how any fallout from an escalation in tensions could impact shipping through the Strait of Hormuz, a passage that separates Iran and the Arabian peninsula. Tankers carrying crude and liquefied natural gas transit through the strait daily to deliver cargoes worldwide.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
The Associated Press reported that Iran issued a warning to ships at sea on Thursday that it planned to run a drill on Sunday and Monday that would include live firing in the strait, citing two Pakistani security officials.
Prices
- WTI for March delivery rose 0.3% to $65.61 a barrel at 7:38 a.m. in Singapore.
- Brent for March settlement closed 3.4% higher to settle at $70.71 a barrel on Thursday.
ALSO READ: Trump Says He Will Announce Fed Pick Friday Morning
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
