Oil remains on edge – ING

FXStreet Insights Team FXStreet

Oil prices are rising again after President Donald Trump called for the evacuation of Tehran, ING's commodity experts Ewa Manthey and Warren Patterson note.

Oil spikes as Trump calls for Tehran evacuation

"His comments, which stood in contrast with previous optimism that the Israel-Iran conflict wouldn’t escalate into a broader regional conflict in the Middle East, renewed volatility in financial markets. On Monday, there were reports that Iran had signalled that it wanted to deescalate hostilities with Israel and was willing to restart nuclear talks as long as the US doesn’t join the Israeli attack."

"The US President has cut short his G-7 visit, reportedly due to escalating tensions in the Middle East, which has sparked speculation about potential US involvement in the conflict. The market remains on edge with the biggest fear a potential blockage of the Strait of Hormuz, which would lead prices to soar further."

"Almost a third of global seaborne Oil trade moves through the Strait of Hormuz. So far, Oil-exporting infrastructure has been avoided and there has been no blockage of the Strait of Hormuz."

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