Oil prices steady near more than one-month highs as geopolitical tensions mount
Oil prices held steady near more than one-month highs on Tuesday, as escalating geopolitical tensions in the Middle East and Eastern Europe continued to weigh on global energy markets.
US President Threatens Military Action, Tariffs
US President Donald Trump has issued a stark warning to Iran, threatening airstrikes if Tehran fails to agree to a new nuclear deal. Failure to reach a deal would see Iran face “bombing like you’ve never seen before,” Trump said, while not ruling out secondary tariffs on the country.
Trump also threatened to impose tariffs on Russian oil if Moscow fails to reach a deal to end the conflict in Ukraine. The comments have raised concerns about disruptions to oil supplies from two of the world’s largest oil producers.
Reactions from the countries involved
Iran has reacted strongly to the threats from the US. Iran's Supreme Leader, Ayatollah Ali Khamenei, stated that Iran will respond strongly if the US takes any military action.
Meanwhile, Russia condemned the "ultimatums" from the US, saying that threats and sanctions are not the right approach in international relations.
Oil market reacts to tensions
In the face of these tense developments, oil prices have fluctuated significantly. Brent crude oil is trading at $75.81 per barrel, holding above the important $75.66 level. This level acts as a major support, reinforced by the 50-day EMA at $75.59, indicating that buying power is still dominant.
However, analysts warn that geopolitical tensions could continue to push oil prices higher, especially if there are supply disruptions from major producing regions. At the same time, concerns about a global economic recession due to tariffs and trade conflicts are also putting pressure on future oil demand.
Conclusion
In the current context, the oil market is facing many fluctuations due to the impact of geopolitical and economic factors. Investors need to closely monitor international developments to make appropriate decisions in their trading activities.