Oil prices fall after Iranian explosions amid continuing geopolitical tensions


(MENAFN) Following initial spikes in the wake of explosions in Iran attributed to Israel by Washington, oil prices experienced a decline on Friday amidst ongoing tension in stock markets. Analyst Stephen Innes from Spi AM noted that while oil prices often serve as a barometer for geopolitical risks in the Middle East, the current levels suggest a subdued concern regarding such factors.

Despite initially surging over four percent in response to the explosions in central Iran, oil prices entered a downward trajectory as the market anticipated a de-escalation in tensions between Israel and Iran. The price of Brent North Sea crude
for delivery in June dropped by 0.67 percent to USD86.53 per barrel, while West Texas Intermediate crude
for delivery in May decreased by 0.62 percent to USD82.22 per barrel.

Market sentiment shifted following statements from Iranian officials in official media outlets, which appeared to downplay the significance of the attacks. Analysts, including Stephen Innes, interpreted these remarks as providing reassurance that the country's nuclear facilities remained unaffected. Such assurances may potentially hinder the Iranian government's justification for any retaliatory response, contributing to market stabilization.

Meanwhile, gold prices saw a modest increase, rising by 0.11 percent to USD2,381.73 per ounce, nearing the peak it reached the previous week at USD2,431.52 per ounce. This uptick in gold prices reflects ongoing investor interest in safe-haven assets amidst geopolitical uncertainties and market volatility.

The fluctuations in oil and gold prices underscore the delicate balance between geopolitical developments and market dynamics. While initial shocks can trigger significant price movements, subsequent assessments of the situation and official statements play a crucial role in shaping market sentiment and direction. As tensions persist in the Middle East, market participants continue to monitor developments closely, navigating through a landscape marked by geopolitical risks and their implications for global markets.

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