U.S. crude oil rose about 2% on Monday as markets awaited an Israeli strike against Iran.
Oil prices soared last week on concerns that Israel could strike at Iran’s oil industry in retaliation for a ballistic missile attack by Tehran.
U.S. benchmark West Texas Intermediate crude surged 9.09% last week, its biggest weekly gain since March 2023.
Here are energy prices for Monday:
- West Texas Intermediate Oil November contract: US$75.93 per barrel, up US$1.55, or 2.08%.
- Brent December contract: US$79.47 per barrel, up US$1.42, or 1.82%.
President Joe Biden on friday A frustrated Israel Oil prices rose about 5% a day earlier after attacks on Iranian oil facilities Presidential advice The United States is discussing the possibility of launching such an attack. Biden also expressed his opposition to Israel’s attack on Iran’s nuclear facilities.
Helima Croft, head of global commodities strategy at RBC Capital Markets, said it was unclear what form Israel would retaliate. Croft said that if Israel attacks Kharg Island, the impact on the oil market will be huge, as 90% of Iran’s crude oil exports pass through Kharg Island.
“We really need to look at what the Israelis attacked and what the Iranian response mechanisms were,” Croft told CNBC. “Global Communication” on Monday. “But certainly we haven’t been close to a regional war in a long time.”
Alan Gelder, Wood Mackenzie’s vice president of oil markets, said that currently the market has only considered the possibility of an Israeli attack on Iranian oil facilities, but this is not the worst case scenario. “European Scream Box” on Monday.
Gelder said the worst-case scenario would be disruption of the Strait of Hormuz, through which 20% of global crude oil exports pass. The analyst said Iran could target the strait in response to an attack on Israel, which would have a more dramatic impact on crude prices.
