Oil Jumps on Supply Concerns after U.S Strikes Iran Nuclear Sites
Oil prices jumped to near five-month highs during early trading hours on Monday as supply concerns intensified following US airstrikes on Iran’s nuclear facilities in Fordo, Natanz, and Isfahan.
International benchmark Brent crude rose by 0.4%, trading at $76.22 per barrel, up from $75.91 at the previous session’s close. Similarly, US benchmark West Texas Intermediate (WTI) increased by about 0.5%, reaching at $74.08 per barrel, compared to $73.72 in the prior session.
US President Donald Trump said Iran’s key nuclear enrichment facilities had been completely destroyed, warning that Tehran must pursue peace or face much more severe attacks in the future.
The developments heightened concerns over potential oil supply disruptions in the region and increased risk perceptions surrounding the Strait of Hormuz, a key chokepoint for global energy trade.
Iran’s parliament agreed to close the Strait of Hormuz on Sunday, waiting for a final decision from the Supreme National Security Council.
In an interview with NBC, US Vice President J.D. Vance addressed the possibility of Iran taking action that would disrupt traffic in the Strait of Hormuz, saying that such a move would be “suicidal” for Tehran.
“If they want to destroy their own economy and cause disruptions in the world, I think that would be their decision,” he said. US Secretary of State Marco Rubio warned that any move by Tehran to close the Strait following the recent strikes would impact the entire world, including the US and China.
While he noted that the scenario is not currently an immediate concern, Rubio added that in the event of such an escalation, China should be the first to respond.
Maritime traffic remains active in the Strait of Hormuz despite rising tensions following the US strike on Iran. The strait serves as a vital transit route for oil and liquefied natural gas (LNG) exports from the Middle East to global markets via the Arabian Sea and the Indian Ocean.
Hosting roughly one-third of the world’s seaborne crude oil, it is a strategic chokepoint for crude and condensate shipments from key regional producers such as Saudi Arabia and the United Arab Emirates. Oil prices Rise Sharply in 1-Week over Israel, Iran Conflict
