Oil futures down as Israel president denies unilateral strike

Oil futures have fallen today (August 17th) on news the US is planning to release stock of the commodity in order to settle prices and that Israel's president has denied a proposed unilateral strike against Iran.

Middle Eastern tensions have helped push the price of the commodity up this week, as the region's sentiments towards Iran grow increasingly hostile with regards to its controversial nuclear development plans.

Iran - the world's largest oil producer - has prevented international authorities from inspecting all parts of its programme, leading to widespread sanctions. The UK and France have not received oil from the country in many months.

But after Israeli prime minister Benjamin Netanyahu and defence minister Ehud Barak raised the prospect of a unilateral strike, president Shimon Peres played down this action, saying yesterday that he trusts US president Barack Obama's pledge to prevent Iran from producing nuclear weapons.

At 16:45 BST, Brent Crude Oil Futures were 1.2 per cent lower to a value of $113.85 per barrel.