FX.co ★ Oil Falls as Markets Await US Move on Iran-Israel Conflict

WTI crude oil futures dipped below $75 per barrel on Thursday, reversing the gains made in the previous session. This shift occurred as markets anticipated more information regarding possible U.S. involvement in the conflict between Israel and Iran. Following a meeting with key advisors on Wednesday, President Trump provided limited insights into the U.S. stance on supporting strikes against Tehran's nuclear facilities. Any direct American involvement could potentially escalate the conflict and pose risks to the region's energy infrastructure. Despite the decrease, oil prices remained close to a five-month high as the conflict entered its seventh day. The primary concern for the oil market revolves around the Strait of Hormuz, a critical channel for around 20% of global crude oil. However, Iran has not yet indicated any disruption to shipments through this route. In a separate development, the Federal Reserve maintained interest rates on Wednesday but hinted at two potential rate cuts by the end of the year, which could support economic growth and, in turn, increase oil demand.