Oil prices retreat as traders lock in profits after US attacks on Iran

Global oil prices declined on July 16 as investors moved to lock in profits following several days of gains and assessed the impact of new US strikes on Iranian military facilities, Reuters reports.

As of 08:35 Baku time, Brent crude futures were down 24 cents, or 0.28%, at $84.95 per barrel. US West Texas Intermediate (WTI) crude futures fell 15 cents, or 0.19%, to $79.45 per barrel. Earlier in the session, Brent had risen by nearly $1, while both benchmarks remained close to one-month highs.

The pullback came after the United States launched additional strikes against Iran’s coastal defence and missile infrastructure. In response, Tehran said it was prepared to restrict energy exports from the region, describing its confrontation with Washington as an “existential war.”

Priyanka Sachdeva, a market analyst at Phillip Nova, said geopolitical tensions continue to support oil prices, but traders have adopted a wait-and-see approach following the recent rally as they assess the likelihood of actual supply disruptions.

"The focus has shifted from the ​threat itself to whether there is any tangible disruption to oil flows and how both the U.S. and Iran choose to respond in the coming days," the market analyst added.

According to market data, seven vessels transited the Strait of Hormuz on July 15, compared with 13 the previous day, adding to concerns about the stability of supplies through one of the world’s most important routes for transporting oil and liquefied natural gas. 

By Jeyhun Aghazada