President Donald Trump appears to be paving the way for negotiations with Iran as tensions in the Middle East escalate and oil prices rise.
That leaves room for miscalculations that could keep the oil market on edge. Tehran and Washington have already, leading to a dangerous series of counter measures between the adversaries, the Wall Street Journal reported on Thursday.
This week alone, four vessels were allegedly sabotaged in a strategic oil port off the coast of the United Arab Emirates. Iran-aligned Houthi rebels in Yemen also claimed responsibility for drone attacks on Saudi oil infrastructure, prompting retaliatory airstrikes by Saudi Arabia on Houthi positions in Yemen.to the Middle East and pulled diplomatic staff from Iraq in response to intelligence suggesting Iran is planning attacks on U.S. positions in the region.
Oil prices have risen about 2% this week on Middle East tensions. If the rhetoric from Washington cools, oil prices could pull back at least $2 a barrel, Kilduff said.
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