Oil Price Hits Five Month High After US Strikes Iran Nuclear Sites (image-pixabay)
The oil price had five-month highs in Asia on Monday following the US strike on nuclear sites in Iran on Sunday. Brent crude futures rose $1.88, or 2.44%, to $78.89 a barrel as of 11:22 GMT, while U.S. West Texas Intermediate (WTI) crude gained $1.87, or 2.53%, to $75.71.
Brent crude reached a high of $81.40 per barrel, while WTI crude reached a high of $78.40 per barrel on Monday before giving up gains to turn negative and then recover to a 1 percent gain. These were the highest prices since about January 2025.
Read also: “You May Start This War, But We Will End It”: Iran Vows Retaliation For US Strikes
The prices had earlier risen on the start of the conflict on June 13 on mounting fear that Iran would retaliate by closing the Strait of Hormuz. Through this crucial trade route, one-fifth of the global crude supply flows. “All eyes remain on the Strait of Hormuz … and whether Iran will seek to disrupt tanker traffic,” said Saxo Bank analyst Ole Hansen.
As of the current rising tension in the region, the markets are reacting cautiously. Investors are still trying to assess the situation, even though the crisis hasn’t actually disrupted oil supply yet, reports Reuters. UBS analyst Giovanni Staunovo said the risk premium is fading, but it is unclear how the conflict might evolve, and prices are likely to remain volatile in the near term.
According to the Goldman Sachs report on Sunday, Brent could briefly peak at $110 a barrel if oil flows through the Strait of Hormuz were halved for a month and remain down by 10 percent for the following 11 months.
However, according to the reports, the waterway also serves as a major route for Iran’s own oil exports as well. Thus, closing it will make vital damage to its own national revenue. Sustained closure would inflict severe economic damage to Iran itself, says Sugandha Sachdeva at research firm SS WealthStreet.
Read also: Why Trump Chose Weekend To Attack Iran?
US President Donald Trump struck three major nuclear sites in Iran on Saturday, by joining the Israeli assault in an escalation of conflict in the Middle East as Tehran vowed to defend itself.
