Oil prices surge as U.S. joins strikes on Iran’s nuclear sites
Oil prices rose sharply on Monday after U.S. President Donald Trump confirmed American forces had struck Iran’s nuclear facilities over the weekend, joining Israeli attacks in a major escalation of tensions in the Middle East, reports a Kazinform News Agency correspondent.
Brent crude climbed to $78.53 a barrel, up nearly 2%, while U.S. West Texas Intermediate reached $75.35. Earlier in the session, both benchmarks hit five-month highs, driven by concerns over possible supply disruptions.
“The current geopolitical escalation provides the fundamental catalyst for prices to traverse higher and potentially spiral towards $100, with $120 per barrel appearing increasingly plausible,” said Sugandha Sachdeva, founder of SS WealthStreet.
Analysts warn that Iranian retaliation could include closing the Strait of Hormuz, a key route for about 20% of global oil supply. According to state-run Press TV, Iran’s parliament has approved a measure to close the strait.
“The parliament has reached the conclusion that the Strait of Hormuz should be closed,” said Major General Esmaeil Kowsari, a member of the parliament’s National Security Commission. “The final decision in this regard lies with the Supreme National Security Council,” Kowsari added.
Sparta Commodities analyst June Goh noted that “the risks of damage to oil infrastructure... have multiplied,” adding that shippers may begin avoiding the region.
Goldman Sachs warned Brent could briefly peak at $110 if oil flows through the strait are halved.
Earlier, it was reported that the Iranian parliament had approved a measure to close the Strait of Hormuz to naval traffic following U.S. strikes on three nuclear facilities.
