Oil prices rose yesterday amid rising tensions in the Middle East, continuing the strength seen at the end of last week, ING's commodity experts Ewa Manthey and Warren Patterson note.
Trump to talk to President Putin about a proposed ceasefire
"ICE Brent settled almost 0.7% higher on the day, moving back above US$71/bbl. Along with US strikes on the Houthis in Yemen, several factors provided support to the market. China unveiled plans to revive consumption, while Chinese retail sales and fixed asset investment growth came in stronger than expected. Output data suggests that domestic apparent oil demand over January and February averaged 14.7m b/d, up 2.4% year on year."
"Middle East tensions escalated once again in recent days with US strikes on the Houthis, while the Houthis retaliated by targeting a US aircraft carrier. The Houthis are backed by Iran, which could lead to a broader escalation, particularly with President Trump saying Iran 'will be held responsible, and suffer the consequences' if the Houthis continue attacks in the Red Sea. Unsurprisingly, the Trump administration is taking a more hawkish stance against Iran, having tightened oil sanctions since taking office."
"Trump is scheduled to talk to President Putin today about a proposed ceasefire. Energy markets will be watching closely for any progress – particularly whether a potential peace deal might include the resumption of some Russian energy flows. This would be more impactful for natural gas rather than oil, given that the scope to increase natural gas flows is much bigger relative to oil."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
Gold pressures record highs, aims to extend gains
Gold prices maintain their constructive bias well in place on Tuesday, now receding somewhat following earlier record peaks near the $3,040 mark per troy ounce, always on the back of fresh geopolitical effervescence and tariff fears.
EUR/USD picks up pace and flirts with 1.0950
The US Dollar now accelerates its daily correction and lends wings to the risk complex, encouraging EUR/USD to return to the area of recent highs around 1.0950 amid positive news after the Trump-Putin call.
GBP/USD meets daily contention near 1.2950
GBP/USD remains on the back foot despite briefly surpassing the 1.3000 barrier earlier in the day, coming under fresh selling pressure in response to the better tone in the Greenback.
Trump-Putin talks raise hopes of a ceasefire – Middle East risk returns
The prospective end to the Russia-Ukraine war has traders excited for a more positive growth outlook in Europe going forward, with heavily industrialised nations such as Germany having suffered under the weight of elevated energy costs in recent years.
Tariff wars are stories that usually end badly
In a 1933 article on national self-sufficiency1, British economist John Maynard Keynes advised “those who seek to disembarrass a country from its entanglements” to be “very slow and wary” and illustrated his point with the following image: “It should not be a matter of tearing up roots but of slowly training a plant to grow in a different direction”.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.