US Braces for Escalation in Middle East
August 12, 2024
The Baker Hughes Rig Count had oil rigs up to a total of 485 oil rigs. Last year at this time the number of oil rigs was 525.
WTI crude oil rose more than 4% this past week due to better US economic Data the Federal Reserve expected to cut interest rate in September, the US dollar index remaining near a 7-,month low, China’s Consumer Price Index rising by 0.5% which was more than expected on Friday and increasing geo-political risks in the middle East with fears with of Iran retaliation on Israel.
The Wall Street Journal reports that The US is sending a guided missile submarine to the Middle East and is speeding up the time frame for additional aircraft carriers to arrive in the region as the area braces for a possible response by Iran to the killing of Hamas leaders in Tehran.
The market has been concerned about Iran and what they might do, and the market has been up and down on headlines. But there is no clear conviction at this point as these energy markets are still stuck in their ranges and likely will be until something changes.
Prices are a bit higher here in early trading as these stories about the US ramping up the military presence in the Middle East has caused some buying.