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Oil prices cautiously await potential impact of US-Iran escalation

Oil prices cautiously await potential impact of US-Iran escalation

A slight decline in oil prices occurred today, Thursday, following profit-taking and sharp military tensions between the United States and Iran. The U.S. conducted airstrikes against Iranian targets and reinstated a maritime blockade of Iranian ports, affecting the flow of oil through the Strait of Hormuz, which is a vital artery for about 20% of global oil trade. Despite the decrease, futures remain close to their highest monthly levels, with varying expectations among financial institutions. If Gulf exports remain disrupted, Brent prices could surpass $110; however, if tensions ease quickly, prices could fall to around $60. The Strait continues to face risks from geopolitical tensions amid U.S. crude inventories dropping to their lowest level since 2022, leaving the market vulnerable to further volatility.

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