Oil prices rose significantly on Monday, 24th June 2019 to extend its preceding gains from last week of the month of June 2019. The development came as surprise to many experts due expectations over possible dwindling of the global economy, as tensions remain high between Iran and the United States of America.
A report by Reuters indicated that Brent futures were up by 26 cents, or 0.4%, at $65.46 a barrel by 0544 GMT whereas West Texas Intermediate (WTI) crude was up by 40 cents, or 0.7%, at $57.83 a barrel.
Most importantly, oil is usually priced in US dollars, so in that regard, a shoot up in the price of the world dominant greenback (currency), makes it cheaper for holders of other currencies.
This came on the wave of US President Donald Trump’s last week calling-off a military strike to retaliate for Iran’s downing of an unmanned US drone.
Trump opened up on Sunday, 23rd June 2019 that the US was not seeking war with Iran.
However, US secretary of state Mike Pompeo stressed that significant sanctions on Iran would be announced on Monday, 24rd June 2019 aimed at further choking off resources that Tehran uses to fund its activities in the middle eastern region.
Oil prices began surging last week after Iran shot down a US unmanned drone that, the US claimed was shuttling in international airspace while Iran debunked the claim, alleging that the drone has trespassed into its territory.
Amid the escalating tensions, Brent racked up with a gain of about 5% last week, its first weekly gain in five weeks, and WTI recorded an increase of about 10%, its biggest weekly percentage gain since December 2016.
 "Dubai Submerged In Flood")
