WTI Crude Rebounds 4% on Iranian Attack on US Base in Jordan

WTI crude oil prices rebounded over 4% on the 29th following reports of an Iranian attack on a US military base in Jordan. September delivery West Texas Intermediate (WTI) crude traded at 83.52 USD, up 4.11% from the previous session, as of 7:52 AM. The price surge reversed a three-day decline exceeding 10% that occurred as US-Iran tensions appeared to ease, with renewed military confrontation reigniting supply concerns in global oil markets.

Iran Attacks US Base in Jordan, US Intercepts Ballistic Missiles

A media outlet reported on the 29th that Iran attacked a US military base in Jordan. The US military stated that Iran launched multiple ballistic missiles at US forces stationed in the Middle East, but all missiles were intercepted. The attack marked a resumption of military confrontation between the two nations after a period of reduced tensions. Overnight, reports emerged that the US and Iran were close to reviving a ceasefire memorandum of understanding (MOU) while maintaining a halt to active engagement.

Oil Prices Show High Volatility Amid Fluctuating US-Iran Tensions

Oil prices have experienced significant volatility this month. Prices surged earlier on concerns that escalating Iran conflict could lead to blockades of both the Strait of Hormuz and the Red Sea. The recent easing of bilateral tensions led to partial reversal of these gains, with prices falling over 10% in the three trading days prior to the 29th. Oil transportation through the Strait of Hormuz continues to face constraints despite the temporary reduction in direct military confrontation.

Iran Proposes Expanded Strait of Hormuz Control Zone to Oman

Iran set a precondition for reopening navigation through the Strait of Hormuz by proposing to expand its control zone to include areas near Oman, the strait's other coastal nation. Kazem Gharibabadi, Iranian Deputy Foreign Minister, stated in an interview with state television that Iran proposed to Oman a plan where one direction of the navigation route would be in Iranian territorial waters, and part of the opposite lane would also be included in Iranian territorial waters. The proposal represents Iran's terms for resuming full maritime traffic through the strategic waterway.

FAQ

What caused WTI crude oil prices to rebound on the 29th? WTI crude oil prices rebounded over 4% on the 29th following reports of an Iranian attack on a US military base in Jordan, with September delivery WTI trading at 83.52 USD, up 4.11% from the previous session.

What did Iran propose regarding the Strait of Hormuz? Iran proposed to Oman that its control zone in the Strait of Hormuz be expanded to include areas near the Oman side, with one navigation route in Iranian territorial waters and part of the opposite lane also included in Iranian waters, as a precondition for reopening strait navigation.