São Paulo – WTI crude was down 7.52% at USD 90.84 a barrel, while Brent fell 6.55% to USD 104.84 a barrel on Monday morning (23). The drop in prices followed U.S. President Donald Trump’s announcement that he will suspend attacks on Iran’s energy infrastructure for five days. Iran has been targeted by U.S. and Israeli strikes since February 28. In retaliation, it has attacked its Arab Gulf neighbors.
Over the weekend, Trump had threatened to strike energy facilities if Iran did not allow ships to pass through the Strait of Hormuz. Iran, however, officially rejected the threats. On Monday, Trump said he had held “very good” and productive talks with Iranian authorities, which Tehran denied. The U.S. president’s announcement nonetheless eased market tensions. Stock indices such as the Dow Jones and S&P 500 in New York, and the Ibovespa in São Paulo, rose on the news, with European markets also trading higher.
Hit by Iranian attacks, Gulf countries such as Saudi Arabia, the UAE, and Qatar suspended oil and gas production and exports through the Strait of Hormuz, driving up global prices for crude and derivatives. On Monday, ADNOC Gas, a subsidiary of Abu Dhabi National Oil Company, said it had made “temporary operational adjustments” and continues to operate despite the Iranian strikes.
ADNOC Gas said debris fell near some of its production units, which were inspected, with no impact on operations. Last week, Iranian attacks hit the Ras Laffan liquefied natural gas complex in Qatar, pushing up gas prices and raising fears of supply shortages.
With information from ©AFP. Reproduction is prohibited.
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Conflict pushes oil close to USD 120
Translated by Guilherme Miranda
