Oil Prices Up 2% as Israel-Iran Conflict Intensifies

Abiola Olawale
Writer

Ad

Ambode Reaffirms Loyalty to APC, Denies ADC Governorship Bid, Backs Tinubu for 2027

By Abiola Olawale A former Lagos State Governor Akinwunmi Ambode has dismissed rumors of a governorship bid under the African Democratic Congress (ADC), reaffirming his commitment to the All Progressives Congress (APC) and President Bola Ahmed Tinubu’s 2027 re-election campaign. In a statement released today, Saturday, August 9, Ambode described the speculations as “false publications”…

Audu Ogbeh: Tinubu, Obasanjo, Eminent Nigerians Mourn

By Abiola Olawale Eminent Nigerians have expressed sadness over the death of Chief Audu Ogbeh, former Minister of Agriculture and Rural Development and ex-National Chairman of the People’s Democratic Party (PDP). President Bola Ahmed Tinubu, former President Olusegun Obasanjo, and other prominent Nigerians have paid heartfelt tributes to the late statesman, describing him as a…

The Controversial East African Crude Oil Pipeline Is Nearing Completion

The East African Crude Oil Pipeline (EACOP), 64.5% complete, will connect Uganda’s oilfields to Tanzania’s Port of Tanga for global crude exports. Despite $3.6 billion already spent and new financing secured, the project continues to face backlash from human rights groups and environmental activists. Critics cite displacement of communities and threats to ecosystems, while developers…

Ad

Crude oil prices are up 2% in early trading, after a bump from President Trump, who on Monday urged everyone to leave Tehran, suggesting further escalation in the hostilities, though they have flattened since the post.

“IRAN CAN NOT HAVE A NUCLEAR WEAPON. I said it over and over again! Everyone should immediately evacuate Tehran!” the U.S. president wrote on his Truth Social network.

News of oil tankers burning near the Strait of Hormuz today added further concerns for markets, with Brent crude trading at $72.77 per barrel at the time of writing, and West Texas Intermediate changing hands for $71.27 per barrel.

Prices booked losses on Monday after the initial shock from the missile strike exchange between Israel and Iran started to subside among traders, despite Israeli threats they would start targeting specifically oil and gas infrastructure, and after they hit the South Pars gas field—the largest in the world. Oil supply was not affected, however, so traders took profit.

“The conflict between Iran and Israel is still fresh and brewing, and investor sentiments may still be holding on to the ‘war risks,” Priyanka Sachdeva from Phillip Nova told Reuters.

“Added volatility and caution ahead of the Fed policy decision are further ensuring higher-paced price reactions in oil,” the senior analyst also said.

ING commodity analysts meanwhile noted that the loss of Iranian oil supply would “wipe out the surplus that was expected in the fourth quarter of this year.” Yet they added that “However, OPEC sits on 5m b/d of spare production capacity, and so any supply disruptions could prompt OPEC to bring this supply back onto the market quicker than expected.”

This might also have contributed to the change in trader mood that saw oil fall on Monday, even though OPEC deploying its spare capacity is a hypothetical scenario at the moment, as is the loss of Iranian supply.

Source: Oilprice.com

Ad

X whatsapp