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Oil prices rose about 3% on Thursday after a U.S. military drone was shot down over the Strait of Hormuz, with Iran and the United States disputing the location. The incident followed attacks on two tankers near the strait the previous week, and oil had also been supported by an OPEC agreement on a meeting date and signs of U.S.-China trade talks.
Attacks on tankers and a drone shootdown in the Strait of Hormuz raise the risk of supply disruption from a key oil chokepoint. This lifts crude and energy costs for feed production and transport.
aljazeera.comReutersJun 20, 2019After 626 past bullish geopolitics events, Crude Oil (WTI) moved a median +2.1% over 5 sessions (62% higher; middle half -2.3% to +8.5%), and +1.6% over 20.
After 656 past bullish geopolitics events, Crude Oil (Brent) moved a median +1.9% over 5 sessions (63% higher; middle half -2.7% to +6.6%), and +0.7% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
