Oil prices rose by more than 1% on Wednesday following reports that Israel is preparing to launch an attack on Iranian nuclear facilities, raising concerns that any conflict could negatively impact supply availability in the Middle East—a key oil-producing region.
اضافة اعلان
Brent crude futures for July rose 97 cents, or 1.5%, to $66.35 per barrel by 03:30 GMT. U.S. West Texas Intermediate (WTI) crude futures for July also climbed 96 cents, or 1.6%, to $62.99. The June WTI contract expired on Tuesday at $62.56.
CNN reported on Tuesday, citing U.S. officials familiar with the matter, that new intelligence obtained by the United States suggests that Israel is preparing to strike Iranian nuclear facilities. According to CNN, it remains unclear whether Israeli leaders have made a final decision.
Strategists at ING commodities said Wednesday, “Such an escalation would not only threaten Iranian supply but also place large parts of the region at risk.”
Iran is the third-largest oil producer among OPEC members, and any Israeli strike could disrupt oil flows from the country.
There are also concerns that Iran could retaliate by blocking the flow of oil tankers through the Strait of Hormuz—a strategic chokepoint in the Gulf through which Saudi Arabia, Kuwait, Iraq, and the UAE export crude oil and fuels.
The U.S. and Iran have held several rounds of talks this year over Iran’s nuclear program, following former President Donald Trump’s reimposition of tough sanctions on Iranian crude exports in an effort to curb its nuclear ambitions.
Despite the discussions, U.S. officials and Iran’s Supreme Leader Ali Khamenei made statements on Tuesday indicating that both sides remain far from reaching a resolution.
ING analysts stated: “There are indirect nuclear talks between the U.S. and Iran which, if successful, could provide further support for the market. However, these talks appear to be losing momentum.”
Nevertheless, there were some signs of improvement in crude oil supply. U.S. crude inventories rose last week, while gasoline and distillate stocks declined, according to market sources citing American Petroleum Institute (API) data on Tuesday.
The sources, who requested anonymity, said U.S. crude inventories—the world’s largest oil consumer—rose by 2.5 million barrels in the week ending May 16.
Investors are now looking ahead to official U.S. government inventory data from the Energy Information Administration (EIA), due later Wednesday. Kazakhstan's oil production also rose by 2% in May, according to an oil industry source on Tuesday, defying OPEC+ pressure on the country to cut its output.
—(Agencies)
