Oil Slumps as US Pause of Iran Strikes Cools Regional Tensions

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Or sign-in if you have an account.jg63{]ad6kb7hsc15iwa0jl7_media_dl_1.png ICE, Bloomberg(Bloomberg) — ⁠⁠Oil tumbled at the week’s open after the US paused strikes against Iran over the weekend, easing energy supply risks in the Middle East even as Houthis claimed attacks against targets in Saudi Arabia.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountBrent retreated by more than 7% in the initial few minutes of the session to dip below $90 a barrel, before trading near $92. US oil marker West Texas Intermediate also declined, along with European natural gas.After striking the Islamic Republic for 13 days, the US has held off since late Friday, raising questions over President Donald Trump’s next move. Iran’s army said that Tehran had suspended its responses.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againStill, Tehran-backed Houthis in Yemen said they had struck facilities linked to Saudi Aramco in the Red Sea port towns of Jizan and Yanbu on Saturday, though neither Riyadh nor the state-owned producer confirmed the claim.Global benchmark Brent has still surged by more than a quarter this month, as the US-Iran conflict spread beyond the Strait of Hormuz to the Red Sea, with the Houthis threatening to impose a blockade of Saudi ports. The conflict — now nearing the end of its fifth month — has stoked concerns of a global inflationary shock as stockpiles sink and product prices jump.At the weekend, Saudi authorities issued emergency warnings for two provinces, before lifting them. Yanbu, the western terminus of Saudi Arabia’s East-West pipeline, has become the kingdom’s key crude export outlet, handling millions of barrels a day since the Strait of Hormuz became effectively shut. Jizan is home to an Aramco refinery and export terminal.Asked on NBC’s Meet the Press on Sunday whether President Trump had decided against escalation, Ambassador to the United Nations Mike Waltz said that the US leader was “giving the talks some space.”Still, Washington — which began the war at the end of February in a joint strike with Israel — and Tehran appear to remain far apart on key issues. These include Iran’s nuclear program, as well as the status of Hormuz.“The pause in strikes and reports of progress in talks has raised expectations of a de-escalatory pathway emerging again, which could lead to a rebound in flows through the Strait of Hormuz and the Red Sea, alleviating oil market pressures,” said Saul Kavonic, senior energy analyst at MST Marquee.“However, all of the key issues, including Iran’s control over the strait, and its missile and nuclear programs, remain intractable, and there is a high risk any ceasefire proves merely temporary,” Kavonic added.The gains in energy and their impact on economic growth, consumer spending and inflation will be among the talking points for central bankers this week. In the US, Federal Reserve officials will meet July 28-29 to assess policy.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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