[MARKET ANALYSIS] Geopolitical tensions between the US and Iran continue to underpin crude prices

Crude benchmarks remain underpinned, with WTI and Brent trading at the ranges of USD 65.74-66.60/bbl and USD 70.73-71.60/bbl, respectively. Ongoing geopolitical tension between the US and Iran will likely keep oil prices volatile in the near term. At the time of writing, the latest update includes US Senator Cruz suggesting that they are likely to see limited strikes on Iran in a matter of days. Meanwhile, Iranian Foreign Minister Araghchi said Tehran will resume talks with the US in Geneva tomorrow. In Russia and Ukraine, Washington warned Ukraine not to strike targets within Russia that could hit US economic interests, according to the FT. Elsewhere in the energy space, Bloomberg sources reported that Russia and Iran are cutting oil prices to China, with Russia’s Urals grade selling at USD/bbl below ICE Brent (prev. USD 10/bbl below) and Iranian Light selling USD 11/bbl below ICE Brent (prev. USD 8-9/bbl).