- There is a constant flow of headlines with respect to Iran and theUS.
- Oil prices are supported on such conflict, with WTI based above $55 the figure.
In recent weeks, the United States has blamed Iran for a string of incidents in the Strait of Hormuz, an important shipping alley in the oil trade bordering one coast of Iran. Iran has denied the accusations. Today, U.S. Secretary Pompeo said the U.S. is serious about enforcing sanctions on the outlaw regime in Iran, hence action is taken against the Chinese co. purchasing oil from Iran on contrary to U.S. sanctions.
This follows earlier titbits such as:
- Iran's Foreign Minister Zarif says - Iran doesn't want to confront Boris Johnson over oil tanker case.
- Zarif claimed that move by Britain was orchestrated by the United States.
Meanwhile, U.S. Secretary of State Mike Pompeo was reported saying on Monday that Washington does not want war with Iran. Regarding the British tanker incident, Pompeo added that it falls on the UK to take care of their ships.
In other news, Iran made an announcement in state media, saying US spies had been arrested in the 12 months to March 2019 and had sentenced some of them to death. Iran's intelligence ministry had said the suspects had been collecting information in the nuclear, military and other sectors. Such announcements are not unusual in Iran, but the timing has raised concerns that Tehran is hardening its position in its standoff with Western powers.
"The Iranian regime has a long history of lying ... I would take with a significant grain of salt any Iranian assertion about actions that they've taken," Pompeo said in an interview with Fox News Channel. Pompeo has declined to comment about any specific cases, but added: "There's a long list of Americans that we are working to get home from the Islamic Republic of Iran."
Market implications
WTI has been buoyed and based down at the $55 handle on the recent tensions between US/UK and Iran, climbing to a high of $56.92 overnight. The thing to watch for is whether heightened tensions will lead to a closure of the Strait of Hormuz which would have an impact on oil exports.
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