WTI jumped 3% on Tuesday morning after U.S. intelligence suggests that an Iranian missile strike is imminent.
The potential for an armed conflict between Iran and Israel has triggered concerns about the stability of oil supplies from the oil-rich Middle East.
According to the White House, the U.S. is actively supporting Israel’s defense and warning Iran of severe consequences if an attack is carried out.
Oil prices are surging in the wake of rumors that Iran is preparing to launch a missile attack on Israel. Reports from U.S. officials suggest that an Iranian missile strike is imminent—the specter of which is driving uncertainty across global markets. As of today, West Texas Intermediate (WTI) crude is trading at $70.16 per barrel, up 2.92% (+$1.99), while Brent crude is also seeing significant gains, trading at $73.61 per barrel, up 2.66% (+$1.91).
The potential for an armed conflict between Iran and Israel has triggered concerns about the stability of oil supplies from the oil-rich Middle East. Market watchers are reacting to the heightened risk of supply disruptions, which could intensify if the conflict spreads or targets key infrastructure in oil-producing nations. Iran has a significant influence on the region’s oil flows, and any escalation in military activity has the potential to hinder exports, driving prices higher.
According to the White House, the U.S. is actively supporting Israel’s defense and warning Iran of severe consequences if an attack is carried out. Tensions between the two nations have escalated following recent Israeli military actions against Hezbollah in southern Lebanon, further heightening fears of a broader regional conflict.
Investors and energy analysts are now closely monitoring developments. Some predict continued price volatility as geopolitical tensions build. If Iran were to follow through with the missile attack, oil prices could spike significantly due to potential supply chain disruptions in an already tight market. The Middle East, particularly the Persian Gulf, remains critical to global energy supplies, and any significant disruption could have far-reaching consequences for the world’s energy markets.
In the short term, market reactions are expected to continue fluctuating as traders respond to new developments in the escalating conflict.
By Julianne Geiger for Oilprice.com
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