The August Brent Futures contract softened slightly through the morning, trading down from $76.89/bbl at 04:00 BST to $75.30/bbl at 10:25 BST, before picking up to $75.78/bbl at the time of writing (11:00 BST). In headlines, on the US-Iran front, President Trump issued a warning on social media last night, signalling that American patience with Tehran is running out. While he stated there were no current plans to target Iran’s Supreme Leader, Ayatollah Ali Khamenei, his remarks hinted at a potentially more confrontational posture as he considers whether to escalate US involvement in the region. Meanwhile, Egypt has launched an emergency energy strategy in response to the shutdown of Israel’s largest offshore gas field, Leviathan, amid Iranian missile attacks. Already under pressure from soaring domestic demand, Egypt has swiftly implemented the plan announced by its Ministry of Petroleum and Mineral Resources, including suspending gas supplies to several industrial sectors and increasing reliance on lower-grade fuels like mazut and diesel, according to Reuters. Prior to the shutdown, Egypt was importing nearly 1 billion cf/d of Israeli gas, according to Israeli government data; supply that had become vital for electricity generation and industrial feedstock. Finally, at the time of writing, the front (Aug/Sep) and 6-month (Aug/Feb) Brent spreads are trading at $1.53/bbl and $5.04/bbl.
