Crude oil holds near $102/bbl as West Asia tensions continue; Brent down 1%, US stocks end higher

Crude oil prices on the global market were holding around $102 per barrel (bbl) after witnessing a minor correction and supply pressure during Tuesday’s market amid Israel’s move to take out the Iranian security chief, Ali Larijani, as part of the ongoing conflict between the United States and Iran.

The United States, along with Israel, as the boots on the ground, have been targeting to take out Ali Larijani, one of the most senior figures in the Iranian regime, reported the news agency Reuters. However, after this move, senior officials at the current regime rejected the de-escalation offers.

Brent crude oil futures hit an intraday high of $104.98 per bbl closer to the afternoon market session on Tuesday, which later went into a brief correction phase, dropping to the psychological mark of $100 per bbl. The crude oil futures then rose back up on the backdrop of the latest geopolitical developments on the US-Iran conflict.

The West Texas Intermediate (WTI) crude oil futures also witnessed pressure in the market, with prices dropping to $93.19 per bbl during Tuesday’s afternoon market.

Oil prices today

Brent crude oil prices were trading 1.08% lower at ₹102.60 per bbl as of 7:31 a.m. (IST) on Wednesday’s market, compared to $103.72 per bbl at the previous commodity market close, according to Investing.com data. However, the crude oil prices were trading at $103.78 per bbl in the early trading hours on March 18.

The US-based WTI crude oil prices were trading 1.15% lower at $94.45 per bbl as of 7:33 a.m. (IST) during Wednesday’s trading session, compared to $95.53 at the previous commodity trading close. The WTI crude prices rose to $95.64 per bbl in the early market hours.

Why are oil prices holding today?

Crude oil prices on the global market seem to be in a holding zone above the $100 per bbl, witnessing high volatility through the trading day over the emerging developments of the US-Iran conflict.

On Tuesday, Israel’s government confirmed that Iran’s security chief, Ali Larijani, was killed by them on March 18. Larijani was reportedly viewed as one of Iran’s most powerful figures and a key individual for the former Supreme Leader Ayatollah Ali Khamenei, who was killed by the combined efforts of the United States and Israel.

Investors were conflicted in the market over the escalating tensions between the United States and Iran, along with US President Donald Trump’s comment that the conflict would end in the ‘very near future.’ In his media address at the Oval Office, Trump said that NATO made a “foolish mistake” of not helping the United States secure the Strait of Hormuz amid the conflict with Iran despite the oil supply pressures.

Trump said that “we don't need any help” from NATO,“but they should've been there”. He also added that their reluctance to send mine-sweeping vessels to the Gulf region was “not a big deal”, but was “unfair” to the United States.

US stocks snapshot

The benchmark US stock market indices, Dow Jones, S&P 500, and Nasdaq closed higher after the trading session on Tuesday, March 17, as oil prices held their ground despite trading above the $100 per bbl psychological mark. Investors in the United States now turn their focus towards the US Federal Reserve’s meeting outcome, which will determine the interest rates for the American economy.

The Dow Jones Industrial Average closed 0.10% higher at 46,993.26 points higher after Tuesday’s trading, compared to 46,946.41 points at the previous market close, according to MarketWatch data. Stocks like International Business Machines Corp., Walt Disney, Amazon, and Goldman Sachs were among the gainers, while others like Johnson & Johnson, Salesforce, Amgen, and Honeywell International were among the losers.

The S&P 500 index closed 0.25% higher at 6,716.09 points, compared to 6,699.38 points at the previous Wall Street close, according to MarketWatch data. Stocks like Western Digital Corp., Ares Management Corp., Delta Air Lines, and Global Payments were among the gainers.

While others like Dell, Tractor Supply, HCA Healthcare, Paramount Skydance were among the losers for Tuesday/s market.

Nasdaq Composite closed 0.47% points lower at 22,479.53 points, compared to 22,374.18 points at the previous trading session, MarketWatch data showed. Stocks like Lunai Bioworks Inc., U Power, and Bio Affinity Tech were among the gainers, while Meiwu Tech, Aldeyra Therapeutics, Creative Media, and Li Bang were among the losers.