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Oil Prices Soars as Tensions Increases Between Iran and The United States

Oil Prices Soars as Tensions Increases Between Iran and The United States

On Monday Oil prices soared as tensions remain high between Iran and the United States, with Mike Pompeo, U.S. Secretary of State saying “significant” sanctions on Tehran would be announced.

Brent futures were high for 25 cents, or 0.4%, at $65.45 a barrel by 0325 GMT.

The West Texas Intermediate crude was up 37 cents, or 0.6%, at $57.80 a barrel.

U.S. President Donald Trump mentioned last week that he called off an army strike to retaliate for Iran’s striking of an unmanned U.S. drone, and he said on Sunday that he was not looking for war with Iran.

However, Pompeo additionally mentioned “significant” sanctions on Iran could be introduced on Monday aimed toward additional killing off resources that Tehran uses to fund its activities within the area.

“The Middle East clashes ought to help oil prices at the start of the week as crude markets will wait to see Iran’s response to the peril of additional sanctions,” mentioned Edward Moya, senior market analyst at OANDA in New York.

Last week Brent racked up a gain of about 5%, acquires in five weeks among the escalating tensions, and WTI jumped nearly 10%, its biggest weekly proportion gain since December 2016.

In the meantime, U.S. energy companies last week elevated the number of oil rigs working for the first time in three weeks.

Companies added one oil rig within the week to June 21, bringing the whole rely on 789, Baker Hughes stated in an intently followed report on Friday.

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Lloyd Dutton