Iran strikes drive oil price gains

Iran strikes drive oil price gains

The end of the U.S.-Iran ceasefire is driving oil prices higher and creating uncertainty for future energy prices.

© Filip Singer, Pool Photo via Associated Press

On Tuesday, the U.S. said it was striking Iran in retaliation for attacks on three commercial ships in the Strait of Hormuz.

On Wednesday, President Trump declared that the ceasefire that ended months of conflict was “over” and said that negotiating with Iran was a “waste of time.”

And later Wednesday, the U.S. said it would conduct further strikes on Iran.

By Wednesday evening, the price of crude oil had jumped significantly higher than where it was at the start of the week. U.S. benchmark WTI was trading at about $75 per barrel while international benchmark Brent Crude was trading at $79, up from about $69 and $72 respectively on Monday.

While these prices are significantly higher than they have been in recent days, they’re still well below the highs they saw at the height of the war, when they reached as much as about $120 per barrel.

That’s because traders are waiting to see what actually happens now that the ceasefire is over.

Robert Weiner, professor of international business at George Washington University, said that the market is pricing in  “a slightly increased chance of........

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