Significant increases in oil prices have been recorded in global markets due to investors’ concerns about supply disruptions caused by escalating tensions between Israel and Iran. These events are occurring against the backdrop of heightened situations in the Middle East, a key oil-producing region.
This is reported by Finway
Price Dynamics and Market Reaction
On Tuesday, June 17, Brent crude oil futures jumped by 34 cents, reaching $73.57 per barrel. American WTI crude oil rose by 29 cents to $72.06 per barrel. It is worth noting that the day before, on June 16, oil prices had decreased by more than 1% due to hopes for a de-escalation of the conflict, as reports emerged that Tehran was seeking to halt military actions.
However, a statement from U.S. President Donald Trump on social media calling for “everyone” to evacuate from the Iranian capital raised market concerns. This led to increased risks for oil supply from the region.
Military Risks and Market Expectations
“The conflict between Iran and Israel is still relevant, and investor sentiment may be influenced by ‘military risks’,” notes Priyanka Sachdeva, senior market analyst at Phillip Nova, in an email.
According to experts, the market is also closely monitoring the U.S. Federal Reserve’s Open Market Committee’s decision on interest rates, which could impact future price dynamics. However, investors’ primary focus remains on the uncertainty related to military actions between Iran and Israel.
Iran is the third-largest oil producer among OPEC member countries, so any military actions could lead to supply disruptions and further increases in oil prices.
Meanwhile, U.S. media reported that Trump is proposing to resume negotiations with Tehran regarding the nuclear deal. However, other news, particularly concerning the shipping incident in the Gulf of Oman, highlights additional risks for companies involved in transporting oil and fuel in this region.