WTI oil pulled back as U.S. did not respond to Iran’s attacks on the United Arab Emirates. U.S. said that ceasefire was still in place. The truce was confirmed by Defense Secretary Pete Hegseth.
Hegseth noted that U.S. naval blockade of Iranian ports remained in place, adding that U.S. forces were ready to resume the military operation against Iran if needed.
Iran said that “Project Freedom”, which aimed to help vessels pass the Strait of Hormuz, was a violation of the ceasefire. Currently, the Strait of Hormuz is de-factor blocked.
Traders reduce their bets on the restart of the military operation against Iran as U.S. showed no reaction to Iran’s attacks. It should be noted that U.S. blockade of Iranian ports puts significant pressure on Iran, which means that the country will try to lift the blockade.
The risks of additional escalation are rising despite the lack of response to Iran’s attacks, so it remains to be seen whether oil markets will gain sustainable downside momentum in the near term.