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Oil Prices Rise on Fears of Possible US Attack on Iran

Here is the English translation in clear, news-style language:

Oil prices rose further amid fears of a possible US attack on Iran, a key oil-producing country in the Middle East.

According to sources, Brent crude futures increased by 50 cents, or 0.73 percent, reaching 68.90 dollars per barrel, while US West Texas Intermediate crude rose by 58 cents, or 0.92 percent, to 63.79 dollars per barrel. Both contracts have gained nearly 5 percent since January 26 and are trading at their highest levels since September 29.

Sources said oil prices increased after US President Donald Trump threatened military strikes to end Iran’s nuclear program, and a US naval fleet arrived in the region.

It is worth noting that Iran is the fourth-largest oil producer within OPEC, with daily production of around 3.2 million barrels.

According to sources, uncertainty over a possible attack on Iran has added a geopolitical premium of 3 to 4 dollars per barrel to oil prices. Further escalation could push Brent crude prices up to 72 dollars per barrel. Prices were also supported by an unexpected decline in US oil inventories.

According to the Energy Information Administration, US crude oil inventories fell by 2.3 million barrels to 423.8 million barrels in the week ending January 23, while analysts had expected an increase of 1.8 million barrels.

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