U.S. oil prices rose on Thursday after comments from President Donald Trump raised fears that the war with Iran would not end soon. Brent crude settled 3.3 percent higher at $95.82 a barrel, while West Texas Intermediate futures climbed 2.6 percent to $88.74.
Trump’s remarks weigh on sentiment
In a Truth Social post, Trump wrote that the U.S. did not need a deal with Iran. He pointed to Iranian money held by Washington and to control of the Strait of Hormuz, saying those days had long since passed.
The comments came after Trump had said on Sunday that fresh attacks were highly unlikely as talks progressed. Oil had been under pressure since then, as his post-midterm remarks had eased fears of further strikes. Both countries have reported shipping hit in or near the strait.
Analysts split on the outlook
Jeffrey Currie, founder of Real Macro, told CNBC that near-term prices would stay tame because of substantial volume from the Middle East. Insurance and tanker rates, however, keep longer-dated futures elevated, he said, so he would not be bearish or really bullish.
John Kilduff, partner at Again Capital, said the market may have gotten ahead of itself in pricing in a cessation of hostilities. Renewed doubts about a deal would push the security premium higher, he warned.
Also Read
Andy Lipow, president of Lipow Oil Associates, said neither side’s negotiating position had changed. Iran wants the blockade lifted, sanctions eased and a ceasefire that includes Lebanon. Washington wants Iran to surrender its nuclear stockpile and allow free transit through the strait.
Prices down sharply this month
Despite Thursday’s gain, prices have fallen steeply in November. WTI is down 16 percent so far this month, and Brent has dropped 20 percent.
Related: Oil steady near $86 as US-Iran tensions ease without a deal · Oil slides as Trump calls new Iran offensive unlikely
