Sharp rise in oil: the market reacted to a new round of conflict in the Middle East
Фото: Pixabay
On Friday, June 13, oil prices rose by more than 9% after Israel struck Iran .
This was reported by Reuters.
Brent crude futures rose by $6.29 to $75.65 per barrel, or 9.07%.
West Texas Intermediate crude futures rose $6.43 to $74.47 per barrel, or 9.45%.
It is noted that the rise in oil prices on Friday was the largest intraday swing for both contracts since 2022 – after Russia’s full-scale invasion of Ukraine, which caused a sharp increase in energy prices.
ING analysts noted that the sharp increase in uncertainty requires the inclusion of a higher risk premium due to potential disruptions in oil supplies.
Oil traders in Singapore believe it is too early to say whether the Israeli attack will affect Middle Eastern oil supplies, as it depends on Iran’s response and US intervention.
“The market is concerned about the closure of the Strait of Hormuz,” one trader noted.
MST Marquee Senior Analyst Sol Kavonik stressed that the conflict could escalate due to Iranian retaliation targeting oil infrastructure in the region.
The increase in oil prices also caused a decrease in US crude oil inventories last week from 3.6 million barrels to 432.4 million.
It was previously reported that on the night of Friday, June 13, the Israeli army launched a large-scale operation against Iran and massively attacked nuclear and military facilities .
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