International oil prices sharply dropped to nearly 4%! New variables emerge in the US-Iran war, raising market alert

International oil prices rose on Thursday (5th). (AFP)

[Financial Channel/Comprehensive Report] International oil prices rose on Thursday (5th) as oil tankers were attacked again, triggering market concerns about oil supply, and investors reassessed the follow-up development of the war between the United States and Israel against Iran.

Brent crude oil futures rose $3.67, or 3.88%, to close at $98.29 a barrel.

U.S. West Texas Intermediate crude oil (WTI) futures in New York rose $2.40, or 2.72%, to close at $90.52 a barrel.

Iran's Islamic Revolutionary Guard Corps said two oil tankers and a tugboat caught fire after trying to pass through the Strait of Hormuz through an unauthorized channel.

Saudi Arabia, the world's largest oil exporter, issued an alert on Thursday about potential dangers to its Red Sea oil export hub Yanbu.

Gelber and Associates wrote in a note on Thursday: "Today's rebound reflects the market's continued caution, with investors reluctant to price expectations for a quick return to normal oil shipments before diplomatic progress translates into reliable shipping and deliveries."

Andy Lipow, president of Lipow Oil Associates, said reports that oil tankers hit mines in the waters of the Middle East or were targeted by drones continue to worry the crude oil market. Investors are also worried that Iran's position on negotiations with the United States has not changed.

According to the UK Maritime Trade Action Office (UKMTO), attacks on oil tankers in the Persian Gulf remain close to record levels. Since last Sunday (1st), at least five ships have reported related incidents. The frequency of such attacks is similar to October, when the agency said a total of 35 ships were attacked that month, the most in a single month since the war began.

In the U.S. midterm elections held on Tuesday (2nd), the Democratic Party defeated Trump's Republican Party and gained control of both houses of the U.S. Congress. The new Congress controlled by the Democratic Party will officially take office in January next year. Citi said in a report that the market is worried that after the midterm elections, the White House may shift its focus to using the president's executive power on foreign policy and may further escalate the war with Iran.

Eurasia Group said in a report that despite the recent decline in oil prices, Brent crude oil prices could still climb to a range of $110 to $125 a barrel as long as the conflict escalates further.