Crude oil futures rise as markets weigh Israel-Iran ceasefire

Crude oil futures traded higher on Wednesday morning as markets analysed the durability of a US-brokered ceasefire aimed at easing tensions between Israel and Iran.

At 9.55 am on Wednesday, September Brent oil futures were at $67.05, up by 1.33 per cent, and August crude oil futures on WTI (West Texas Intermediate) were at $65.29, up by 1.43 per cent. July crude oil futures were trading at ₹5633 on Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday against the previous close of ₹5,583, up by 0.90 per cent, and August futures were trading at ₹5,549 against the previous close of ₹5,503, up by 0.84 per cent.

Quoting sources, a Reuters report said the US airstrikes did not destroy Iran’s nuclear capability. According to a preliminary US intelligence assessment, US strikes only set Iran’s nuclear capability back by a few months.

One of the sources quoted by Reuters said Iran’s enriched uranium stocks had not been eliminated, and the country’s nuclear programme, much of which is buried deep underground, may have been set back only a month or two.

In a recent statement, Trump had said that US strikes had obliterated the Iran’s nuclear capabilities.

In a post on the social media platform Truth Social, US President Donal Trump said some media outlets have teamed up in an attempt to demean one of the most successful military strikes in history. The nuclear sites in Iran are completely destroyed, he said.

The latest reports on Iran’s nuclear sites raised concerns among market participants over the possibilities of resurgence of tensions between Iran and Israel. Iran is one of the major producers of crude oil.

Latest US crude oil inventories report by the industry body American Petroleum Institute (API) also supported crude oil prices. According to API, US crude oil inventories declined by 4.27 million barrels for the week ending June 20. Official data from US EIA (Energy Information Administration) is expected later on Wednesday.

July natural gas futures were trading at ₹318.10 on MCX during the initial hour of trading on Wednesday against the previous close of ₹316, up by 0.66 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), July jeera contracts were trading at ₹19,300 in the initial hour of trading on Wednesday against the previous close of ₹19,245, up by 0.29 per cent.

July dhaniya futures were trading at ₹7,082 on NCDEX in the initial hour of trading on Wednesday against the previous close of ₹7,114, down by 0.45 per cent.