(RTTNews) – Crude oil prices have slumped on Friday, adding to the losses from the two previous sessions, as investors anticipate the upcoming meeting between U.S. President Donald Trump and gulf leaders to de-escalate U.S.-Iran tensions.
WTI Crude Oil for October delivery was last seen trading down by $1.74 (or 1.71%) at $100.17 per barrel.
On Wednesday, Axios reported that a meeting between Trump and the leaders of six gulf nations has been planned to take place in New York on Tuesday.
The report stated that the meeting was aimed at discussing what strategy the U.S. should adopt next in the ongoing U.S.-Iran conflict. The slated discussion was also aimed at sharing the U.S. ideas for a post-war strategy.
Market participants welcomed the message and expectations ran high that the U.S. and Iran could return back to a dialogue process for resolving their disputes.
However, late Thursday in an interview with Axios, Trump stated that he had a big decision coming up with regard to Iran. Re-kindling tensions of a fresh war in the gulf, Trump remarked that he may also decide on if the U.S. should annihilate the Iranian regime.
Refraining from commenting on whether he would start a war before the November midterm elections in the U.S. or after that, Trump merely stated that anything could happen.
Trump made it clear that he wanted to find out where the U.S. allies in the gulf stand after his upcoming meeting with the leaders of the gulf nations.
Whenever U.S. forces have attacked Iran, Iran have retaliated by bombing the oil and energy facilities as well as the U.S. bases, located in the neighboring nations. Hence, it is expected that the Gulf Cooperation Council members would urge the U.S. to halt military operations.
According to Iran’s Mehr news agency, today in Iran, tens of thousands of volunteers joined a parade in Iran’s capital as part of Iran’s “Sacrifice for Iran” campaign.
In a show of force, the Iranian leadership mobilized the gathering which included both civilians and military units.
Iran’s President Masoud Pezeshkian was among the participants who claimed that the show of strength should frustrate Iran’s enemy. Military equipment was also on display.
Commercial shipping traffic across the Strait of Hormuz remains severely disrupted.
Despite the U.S. military protecting the vessels transiting the Strait of Hormuz against any attacks from Iran, ship movement hovers far below the pre-war levels.
Citing preliminary shipping data from Kpler today, Reuters reported that yesterday four vessels transited the Strait of Hormuz, down from six a day earlier. Among the four, three entered the strait while one exited. Through the Bab el-Mandeb Strait, 23 commodity vessels transited the waterway.
Today, the United Kingdom Maritime Trade Operations stated that a tanker was struck by an “unknown projectile” in the Strait of Hormuz, triggering a fire that was extinguished and no casualties were reported.
Iran’s Islamic Revolutionary Guards Corps also announced striking a Togo-flagged oil tanker (namely Trend) in the strait late Thursday as it attempted to pass illegally. As of now, it is uncertain if both reports refer to the same incident.
Months before, Iran warned that vessels attempting to bypass the route offered by Iran would come under attack.
Following the drone attacks by Houthi militants, last Friday, Saudi Arabia shut its 1,200-km long East-West pipeline.
The line is expected to recommence partial operations in a few days and full operation within six weeks.
On September 16, the U.S. Federal Reserve raised interest rates by 25 basis points to the 3.75% to 4.00% range.
The U.S. Dollar Index was last seen trading at 100.23, down by 0.02 (or 0.02%).
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