Iran says US to ‘pay the price’ for Qeshm civilians killed

Lallalit Srijandorn FXStreet

Iranian Parliament Speaker Mohammad Bagher Ghalibaf said that the United States (US) will pay the price for killing Iranian civilians, Aljazeera reported on Thursday.

“The United States soils its hands with a new crime every day; the terrorist attack on the residential homes of civilians on Qeshm Island is a continuation of the atrocities in Minab and Lamerd. Americans have grown accustomed to making up for the slaps they receive on the battlefield by spilling the blood of the innocent. They will pay the price,” Ghalibaf posted on X.

The remarks came after Iran’s state media reported that a couple and their child were killed in a US attack on a residential building in the Iranian island of Qeshm.

The Islamic Revolutionary Guard Corps (IRGC) late Thursday claimed responsibility for an attack on a military base in Kuwait. Fars news agency reported Iranian military attacked the Ali al-Salem airbase in Kuwait, which hosts the US air force. It claimed two drone hangars and a fuel tank for aircraft and military helicopters were destroyed in the strike.

Egypt also said on Thursday that a drone hit two ships at its Mediterranean port of Damietta as attacks on energy infrastructure widen across the Middle East.

Market reaction

At the time of writing, the West Texas Intermediate (WTI) is down 1.20% on the day at $82.60.

WTI Oil FAQs

What is WTI Oil?

WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.

What factors drive the price of WTI Oil?

Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.

How does inventory data impact the price of WTI Oil

The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.

How does OPEC influence the price of WTI Oil?

OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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