Oil Prices Rise Amid U.S.-Iran Tension

Monday,   24-Jun-2019   09:18 AM (IST)

Oil prices gained on Monday in Asia as Middle East tension simmered. U.S. Crude Oil WTI Futures traded 0.6% higher to $57.80 by 11:15 PM ET (03:15 GMT). International Brent Oil Futures gained 0.3% to $64.67. U.S. President Donald Trump said over the weekend that the U.S. will impose “major additional sanctions” against Iran this week after Tehran’s Islamic Revolutionary Guard Corps said it shot down the U.S. RQ-4A Global Hawk surveillance drone. Iran accused of incursion and spying over Iranian airspace, while the U.S. said that the aircraft was in international airspace when it was targeted. The news came after Trump called off military strikes against the Islamic Republic over concerns about the loss of life. However, the president noted that he has not ruled out using military force against Iran in the future. Tensions between the two countries have been simmering since the White House decided to withdraw from the UN-backed 2015 Iran nuclear agreement. The administration most recently accused Iran of last week's attacks on oil tankers in the Persian Gulf, which Tehran strongly denied involvement in the explosion. U.S. crude jumped more than 9% and the global benchmark Brent jumped by 5% last week amid tension between the two countries. Elsewhere, Trump’s highly-anticipated meeting with Chinese leader Xi Jinping later this week will be closely watched. Oil prices could also see another sharp upside if the U.S. president and his team hold, as he has promised, positive talks with Xi at the G-20 summit.