Oil Prices Rise 5% as Israel, Iran Renew Missile Attacks
Oil prices surged by about 5% on Monday as escalating tensions in the Middle East heightened concerns over potential supply disruptions amidst airstrikes.
International benchmark Brent crude traded at $97.69 per barrel, up around 4.9% from the previous close of $93.09. US benchmark West Texas Intermediate (WTI) increased about 4.5% to $94.49 per barrel, compared with $90.54 in the previous session.
An Israeli airstrike targeted a petrochemical facility in Mahshahr, southwestern Iran, on Monday, causing partial damage to the site, Iranian officials said.
Valiollah Hayati, deputy governor for security affairs in Khuzestan province, said projectiles struck the Karun Mahshahr Petrochemical Company, damaging part of the industrial complex. No casualties were reported, according to state-run Mehr News Agency.
Meanwhile, sirens sounded across parts of central and southern Israel on Monday after missile launches from Iran, prompting Israeli air defense systems to intercept incoming projectiles, the Israeli military said.
Explosions were heard over several areas, including Jerusalem and the occupied West Bank, as interception efforts continued.
Overnight, Iran launched multiple waves of missiles toward Israel, triggering alerts in northern cities. Israeli authorities said around 10 missiles were fired, while the military reported carrying out strikes on western and central Iran in response.
Israel also temporarily closed its airspace after intercepting a missile launched from Yemen, according to Channel 12.
The Israeli military said air defense systems successfully intercepted the projectile after warning sirens sounded across the Tel Aviv metropolitan area and parts of central and southern Israel.
Additionally, Houthi military spokesperson Yahya Saree announced an immediate ban on maritime passage for all Israeli-linked vessels through the Red Sea.
Iran-backed Houthis in Yemen also said they launched a missile attack on Israel and warned that Israeli vessels in the Red Sea would be targeted.
Saree said the group would respond to what he described as Israel’s escalatory actions and vowed to intensify attacks against Israel.
Escalating military exchanges between Iran and Israel, combined with fresh threats to Red Sea shipping, are supporting oil prices by reinforcing concerns over potential supply disruptions across Middle East.
On the other hand, seven OPEC+ members agreed to raise oil production by a combined 188,000 barrels per day (bpd) in July, in line with market expectations, helping limit further price gains.
Saudi Arabia and Russia will account for the largest increases, each adding 62,000 bpd, followed by Iraq with 26,000 bpd and Kuwait with 16,000 bpd. Kazakhstan is set to increase output by 10,000 bpd, while Algeria and Oman will add 6,000 bpd and 5,000 bpd, respectively.
While the planned output increase may ease some supply concerns, risks linked to Strait of Hormuz disruptions and capacity constraints in several producer countries continue to support prices. Iran Opens Strait of Hormuz to Chinese Ships
