Crude oil prices surge after Israeli strikes on Iran

Crude oil prices rose more than 13% on Friday, June 13, amid reports of Israeli strikes on Iran. This was the biggest jump in recent months and raised concerns about possible disruptions in the supply of raw materials.

It is noted that the price of Brent crude oil exceeded $ 78 per barrel, recording the largest daily increase since March 2022 after Russia’s full-scale invasion of Ukraine.

The price of US West Texas Intermediate crude rose by $ 5.38 (or 7.91%) to $ 73.42 per barrel after an intraday high of $ 74.35.

The oil market reacted to fears of a large-scale war in the region, which accounts for a third of the world’s crude oil production.

Recall that on the night of June 13, Israel launched a large-scale operation against Iran and struck its nuclear and military facilities. A state of emergency has been declared in Israel and Tehran’s response is expected.

“The Israeli strike on Iran has further increased the risk premium,” said Sol Kavonik, senior energy analyst at MST Marquee, in a comment to The Guardian.

According to him, “the conflict must escalate to the level of an Iranian response to oil infrastructure in the region before it really has a significant impact on oil supplies.” He added that in an extreme scenario, Iran could disrupt supplies of up to 20 million barrels per day – either by attacking infrastructure or by restricting passage through the Strait of Hormuz.

Recall that earlier, oil prices rose amid investor expectations about the outcome of negotiations between the United States and China. There is hope that these agreements will be able to ease trade tensions, which in turn will have a positive impact on fuel demand.

Tags: prices