Oil Prices Rise as Investors Assess Ceasefire Between Iran and Israel
Oil prices witnessed a significant increase during trading on Wednesday, June 25, partially offsetting the large losses incurred in the previous two sessions, as investors monitor the fragile ceasefire between Iran and Israel.
Brent crude rose by 1.3% to reach $88.01 per barrel, while West Texas Intermediate jumped by 1.37% to $65.25 per barrel.
Prices had hit their lowest levels since June 10 for Brent crude and June 5 for West Texas Intermediate in yesterday's session, levels that predate the sudden Israeli attack on key Iranian military and nuclear facilities on June 13.
According to Reuters, oil prices surged to their highest levels in five months after the US attacks on Iranian nuclear facilities earlier this week.
An initial assessment by US intelligence agencies indicated that the airstrikes did not completely destroy Iran's nuclear capabilities, but only delayed the nuclear program by a few months.
The ceasefire, mediated by US President Donald Trump, remains in place so far, after both Israel and Iran announced a temporary halt to their aerial warfare following a public rebuke from Trump to both parties for violating the truce.
Direct US intervention in the conflict has raised concerns among investors about the security of the Strait of Hormuz, the strategic waterway through which between 18 to 19 million barrels of crude oil and fuel pass daily, equivalent to a fifth of global consumption.
Investor attention is now turning to the official data expected from the US government today, Wednesday, regarding domestic oil and fuel inventories, after the American Petroleum Institute data yesterday revealed a decrease in crude inventories by 4.23 million barrels for the week ending on June 20.
