Oil prices have risen with fears related to the breakdown of supplies from the Middle East after CNN stated that Israel is preparing to strike a blow to Iranian nuclear facilities, as well as gold in a state of financial uncertainty in the United States, where Congress discusses a comprehensive tax project.
Oil
In the latest transactions, Brent crude futures for the nearest delivery of 0.75 cents or 1.18% increased to $ 66.15 a barrel, and US West Texas Intermediate crude futures rose 78 cents, or 1.31%, registering $ 62.84.
“CNN” said yesterday, Tuesday, quoting American officials familiar with that new intelligence information obtained by the United States indicates that Israel is preparing to strike Iranian nuclear facilities.
The news network, quoting officials, added that it was not clear whether Israeli leaders had made a final decision.
“Such an escalation will not only endanger Iranian supplies, but will also endanger parts of the region as well,” said ING today.
Iran is the third largest producer among the members of the Organization of Petroleum Exporting Countries (OPEC), and any Israeli attack may cause its raw supply to be disrupted.
There are fears that Iran may be restricted, in the event of attacking it, by preventing oil tanker flows through the Strait of Hormuz in the Gulf, through which Saudi Arabia, Kuwait, Iraq, and the Emirates export crude oil and fuel.
The United States and Iran held several rounds of talks this year on the Iranian nuclear program, and US President Donald Trump re -imposed more sanctions on Iranian crude oil exports to force Tehran to abandon its nuclear ambitions.
Despite these talks, US officials and Iranian supreme leader Ayatollah Ali Khamenei made comments yesterday indicating that the two sides are still far from reaching a solution.
“There are indirect nuclear talks between the United States and Iran, which, if successful, may push the market to rise more. However, these talks seem to lose their momentum,” said ING.
Nevertheless, signs of supplies increased.
Sources in the market, quoting the numbers of the American Petroleum Institute yesterday, said that crude oil stocks in the United States rose last week, while gasoline stocks and distillation products decreased.
The sources said that crude oil stocks in the United States, the world’s largest crude consumer, rose by 2.5 million barrels in the week ending May 16.
Investors are also awaiting US government oil stock data issued by Energy Information Administration later on Wednesday.
A source in the sector revealed that Kazakhstan’s oil production increased 2% in May, an increase that defies the pressure of the OPEC+ alliance to reduce its production.
gold
Gold rose to its highest level in a week with the weakness of the dollar and investors seeking a safe haven amid a state of financial uncertainty in the United States, where Congress discusses a comprehensive tax project.
Gold in instant transactions increased by 0.5% to $ 3309.7 an ounce, after it recorded its highest level since May 12 earlier in the session. US gold futures increased 0.7% to $ 3307.90.
The dollar has declined to its lowest level since May 8, making the gold price in dollars cheaper for foreign currencies.
“The public dollar index has lost more than a full point during the past 24 hours, with Moodyz’s credit classification in addition to doubts about the tax law submitted by (US President Donald) Trump in undermining the dollar,” said Edward Meir’s analyst, Edward Meir.
On Tuesday, Trump pressed his Republican comrades in the Congress to unify their ranks behind a comprehensive draft law to reduce taxes, but he apparently failed to persuade a group of rejectionists who can still block the project.
“Gold is more likely to witness more in the medium to long term, although if any positive addresses appear for commercial deals, this may be an obstacle to gold in an attempt to restore the level of $ 3500,” said Tim Waterproof, chief market analyst, Tim Water.
As for other precious metals, its performance was as follows:
- Silver in instant transactions increased 0.27% to $ 33.16 an ounce.
- Platinum fell 1.07% to 1046.64 dollars.
- Palladium rose 0.9% to 1007.95 dollars.
