WTI holds steady as traders weigh US-Iran tensions and supply risks
West Texas Intermediate (WTI) Oil trades little changed on Friday as traders weigh easing fears of an immediate US-Iran military escalation against persistent supply risks in the Strait of Hormuz. At the time of writing, WTI trades around $90.65 per barrel, up 0.10% on the day.
Oil prices pared some of their gains on Thursday after US President Donald Trump said Washington would not attack Iran before the November midterm elections while reiterating that Tehran would not be allowed to acquire a nuclear weapon.
US Vice President JD Vance also told Reuters earlier this week that Iran must make a “meaningful” reduction in its nuclear enrichment capacity to end the war. A senior Iranian official responded that Tehran would not give up its right to enrich uranium and said Washington’s proposals remain at odds with Iran’s demands.
Iran has also maintained that it will not reopen the Strait of Hormuz until its conditions are met. On Friday, Iran’s Islamic Revolutionary Guard Corps (IRGC) warned that vessels using what it considers unauthorised routes could be pursued beyond the Strait and across the wider region.
The latest warning followed reports from Iran’s Tasnim News that a large liquefied petroleum gas tanker had been hit and caught fire. The IRGC blamed the United States for the escalation in regional maritime tensions.
Elsewhere, the supply picture remains mixed. Regional crude exports are improving, led by Saudi Arabia after the restart of its East-West pipeline, which allows crude to reach the Red Sea without passing through the Strait of Hormuz. However, fighting between Saudi Arabia and the Houthis keeps risks to regional energy infrastructure elevated. Meanwhile, Hurricane Isaias has forced producers to shut down around 1.3 million barrels per day, or 62.9% of Gulf of Mexico Oil production.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
McEwen’s $55M Ontario asset sale fuels gold growth plans
US Stock Market Movement | US clinical-stage biopharmaceutical company Retension Pharmaceuticals (RTSN.US) debuts on the US stock market; shares fall over 10% after opening
As of press time, the stock has dropped more than 10%, trading at $10.77.
U.S. Stocks Move | Trex Bio (TRXB.US) Debuts on the U.S. Stock Market, Drops Over 1.3% After Opening
As of press time, the stock has fallen by over 1.3%, trading at $13.805.
BUZZ - Broker Perspectives: Analysts Express Doubts Over Starbucks and Chipotle Acquisition
Latest Update October 9 – The Financial Times reported on Thursday that Starbucks (SBUX.O) has explored a potential acquisition of Chipotle (CMG.N). This move would bring CEO Brian Niccol back to the Mexican burrito chain he once led. Starbucks declined to comment, saying the company remains "fully focused" on its business turnaround. Chipotle's stock fell about 4% to $31.32 on Friday, after surging 6.2% in the previous trading session. Limited strategic rationale BTIG expressed "high skepticism," stating that the deal does not make sense operationally, would cause significant dilution for Starbucks shareholders, and would disrupt management operations. "Over the years we've heard many stories about multi-brand acquisitions... but few have materialized, and even fewer have succeeded," BTIG noted. William Blair pointed out that Starbucks’ $9.4 billion net debt as of June makes it difficult to finance an acquisition and could push the combined company’s leverage ratio to about six times—considered high for the restaurant industry. D.A. Davidson stated the probability of the deal succeeding is 20% or less, given the significant differences between the brands and the apparent lack of clear synergies. Raymond James noted that due to the low overlap in menus, supply chain benefits are likely limited, while performance among multi-brand restaurant platforms has been mixed. eMarketer’s Suzy Davidkhanian commented that Niccol's familiarity may reduce execution risk, but investors might still see the deal as a "costly distraction" during Starbucks’ transformation. (For the convenience of non-English speakers, Reuters automatically translates its reports into several other languages. Automated translation may be inaccurate or fail to include necessary context; Reuters does not guarantee the accuracy of automated translated text and provides it solely for readers’ convenience. Reuters accepts no responsibility for any damage or loss resulting from the use of automated translation functions.)
Crypto prices
More
