Oil prices jump more than 6% after Trump's remarks

Oil drilling platform

Oil prices extended gains during Wednesday trading, following remarks by US President Donald Trump in which he indicated the end of the truce between the United States and Iran.

This came after US forces launched airstrikes against Iranian targets in response to attacks targeting three commercial vessels while transiting the Strait of Hormuz, reigniting concerns about the safety of oil tanker traffic through the strait.

In a statement issued today, the Iranian Foreign Ministry stated that the US strikes constitute a blatant violation of the memorandum of understanding signed by Washington and Tehran last month to end the war.

Bjarne Schieldrop, chief commodity analyst at SEB Bank, told Reuters that the latest developments have increased doubts about the future of negotiations, further clouding the outlook for navigation in the Strait of Hormuz.

Change in futures prices of the two benchmark crudes

Crude

Price ($/barrel)

Change value ($)

Change (%)

Brent (September delivery)

78.72

+4.56

+6.15

WTI (August delivery)

74.95

+4.51

+6.35

* At 12:03 PM Mecca time.

Data from the American Petroleum Institute showed a decline in US crude inventories, while markets await the release of official data from the Energy Information Administration later today, with expectations of a drop of around 2 million barrels.

Brent and WTI crude oil prices

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