investors assess U.S.-Iran tensions, lingering supply fears
CNBC • • business
Key Points:
- Oil prices fell on Tuesday after a sharp rise on Monday, as traders weighed the risk of supply disruptions amid escalating U.S.-Iran tensions following attacks in the UAE and actions in the Strait of Hormuz.
- Brent crude for July delivery dropped 0.60% to $113.77 per barrel, and U.S. West Texas Intermediate fell 1.35% to $105.06 per barrel, reversing Monday's gains of 6% and 4%, respectively.
- U.S. President Donald Trump issued stern warnings to Iran over attacks on commercial vessels, suggesting stronger military involvement, including a call for South Korea to join the mission protecting shipping lanes.
- Goldman Sachs highlighted concerns over rapidly depleting refined product buffers, especially in petrochemical feedstocks and jet fuel, with localized shortages expected in regions like South Africa, India, Thailand, and Taiwan.
- Chevron CEO Mike Wirth cautioned that fuel shortages are becoming a growing issue in some areas due to the Strait of Hormuz closure, emphasizing that supply availability, not just price, will impact markets in the coming weeks.
