Comments: Oil prices spike, but downward pressures persist

Nikos Tzabouras, Senior Market Analyst at Jefferies-owned Tradu.com, discussesing the recent upward movement in oil prices, as the conflict with Iran heats up.

Trump’s threats on Iranian energy infrastructure have sent the price of oil as high as $116 per barrel.

Nikos explains that high prices are justified by the disruption in the Strait of Hormuz and the low potential for naval escorts. However, partial lifting of US sanctions on Russia and the US’s aim to wrap the conflict up fast remain strong downward pressures.

Nikos Tzabouras, Senior Market Analyst at Tradu.com, commented:

“Oil prices remain elevated as Israel strikes Iranian energy infrastructure and Tehran retaliates. Transit through the Strait of Hormuz remains effectively closed, and efforts to establish a naval escort are still elusive. These lingering disruptions continue to tighten the market and could shift previously unfavourable fundamentals, leaving room for further crude gains.

“That said, the release of stockpiles and a partial lifting of US sanctions on Russia offer near-term relief. Should passage through the Strait be restored soon, a well-supplied market could return to normality and push prices lower.”