Oil prices are at very high levels and are increasing further in response to the intensification of the US and Israel's military operations against Iran, brokers say.
A barrel of West Texas Intermediate crude oil delivered on IV costs USD 72.45 on NYMEX in New York, up by 1.71%.
Brent on ICE on V is priced at USD 79.53 per barrel, up 2.30%, after an increase of approximately 7%. at the end of trading on Monday.
On Saturday, the United States fired missiles at targets in Iran, while calling on the local population to overthrow the Islamic regime.
Tehran responded with a wave of attacks on Israel, as well as on US bases and other targets in countries such as Saudi Arabia, Qatar, the United Arab Emirates, Kuwait and Bahrain.
Iran threatened to completely close the Strait of Hormuz and attacked the American embassy in Riyadh with drones.
US President Donald Trump announced retaliation for this attack and the fallen US soldiers in an interview with NewsNation.
At least two drones hit the US Embassy in Riyadh. A small fire broke out on the embassy premises. There is no information about victims so far.
“We will soon find out what the US retaliation will be for the attack on the American embassy and the fallen soldiers,” Donald Trump announced.
According to Central Command, six American servicemen have been killed and at least 18 wounded in operations against Iran so far.
US Vice President JD Vance said in an interview for Fox News that what will happen to the regime in Iran is secondary to the main goal of depriving Iran of the opportunity to acquire nuclear weapons.
Vance also promised that the current war would not be a multi-year conflict like those in Iraq and Afghanistan.
The Israeli prime minister also assured that the war with Iran “will not last forever.”
Benjamin Netanyahu said on Fox News on Monday that the US-Israeli operation against Iran would be “swift and decisive action” and not an endless war.
“It will be a quick and decisive action, we will create conditions, first of all, for Iranians who will regain control over their fate and create their own, democratically elected government, which will contribute to changing Iran,” the Israeli prime minister emphasized on American television.
“It will take some time, but it will not be years. It is not an endless war,” Netanyahu said.
US Secretary of State Marco Rubio announced that the strongest attacks from the US are yet to come.
“The strongest attacks from our military are yet to come,” said the head of American diplomacy.
“We hope that the Iranian people will manage to overthrow the current authorities, but this is not the goal of our operation,” he said on Monday.
He emphasized that the goal of the American operation is to destroy Iran's ballistic capabilities and navy.
Rubio said the next phase of the operation will be much stronger than the current one.
Analysts indicate that the war in the Middle East is seriously shaking energy markets.
The movement of oil tankers through the Strait of Hormuz has practically stopped.
This narrow canal – off the coast of Iran – handles 1/5 of the world's oil production and a similar share of LNG.
Supplies through this waterway usually come from Iran, as well as from other producers in the region, including: from Saudi Arabia – on its way to global markets.
The armed conflict in the region has already had a wide impact on transportation markets – the cost of transporting crude oil from the Middle East to China rose to the highest level in history on Monday.
“We expect oil prices to hit $82-85 a barrel over the next few days as Iran attacks energy infrastructure and shipping,” said Robert Rennie, head of commodities research at Westpac Banking Corp.
“The earlier increase in oil supplies by OPEC countries was a certain buffer against greater increases in raw material prices,” he added.
(PAP Business)
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