Oil prices steady at $106 after sharp declines

econews. Crude has been volatile in recent days as traders attempt to weigh the chance of the US and Israel resuming strikes against a possible breakthrough in efforts to end the more than eight-month-old conflict.

US President Donald Trump has ruled out launching a new wave of major strikes against the Islamic republic before Americans vote in Tuesday’s midterm elections.

Brent crude, the international benchmark, remained at $106 a barrel after US forces hit targets on Qeshm Island in the Strait of Hormuz late on Monday, in what American officials said was a “defensive measure”.

West Texas Intermediate, the US benchmark, rose 2.1 per cent to $98.46 a barrel in early London trading on Tuesday.

Brent settled 7.6 per cent lower at $104.77 a barrel on Monday while WTI was down 7.4 per cent to $96.46 a barrel.

Monday’s sharp drops came after Iranian President Masoud Pezeshkian said the country’s supreme leader had granted the government “certain authorities” in negotiations aimed at securing a deal with the US.

Oil traders remain focused on the Iran war, which has dominated global energy markets since the US and Israel first attacked Tehran at the end of February.

Brent crude for December delivery climbed as high as $118 a barrel on its final day of trading on Friday, driven in part by fears that the US and Israel would embark on a fresh wave of strikes against Iran.