Oil Prices Fall Despite U.S.-Iran Military Clashes; WTI Drops 1.96% to $72.08 on July 9

According to Yonhapinfomax, oil prices declined on July 9 despite the fourth consecutive day of military exchanges between the United States and Iran. August delivery West Texas Intermediate crude fell $1.44, or 1.96%, to close at $72.08 per barrel on the New York Mercantile Exchange. Brent crude for September delivery dropped $1.72, or 2.20%, to $76.30 per barrel.

Market participants attributed the price declines to expectations that the conflict would remain isolated. Despite reduced tanker traffic through the Strait of Hormuz amid the escalation, risk sentiment strengthened as traders anticipate the clashes will be short-lived and negotiations will resume, supported by President Trump's statement that the military operations would be brief.