Oil Rises for Second Week as Israel, Iran Tensions Escalate
Oil prices are poised for a second straight weekly gain following Israel’s airstrikes on Iran, which have heightened concerns over potential supply disruptions across the oil-rich Middle East, and renewed optimism around US-China trade relations.
Brent crude was trading at $72.76 per barrel, up 9.7% from last week’s close of $66.34. Similarly, West Texas Intermediate (WTI) stood at $70.79 per barrel, up about 10.4% from last Friday’s close of $64.09.
Prices surged more than 7% earlier in the day—reaching their highest levels in nearly five months—after Israeli forces targeted key military and nuclear sites in Iran, according to Iranian media reports.
The strikes reportedly hit the homes of senior commanders in the Iranian Army and the Islamic Revolutionary Guard Corps, as well as the Natanz Uranium Enrichment Facility—Iran’s primary nuclear site.
Residences of nuclear scientists were also among the reported targets. The escalation comes amid a breakdown in diplomatic talks between Washington and Tehran over Iran’s nuclear program.
A sixth round of negotiations was scheduled to take place Sunday in Muscat, Oman, focusing on Iran’s growing uranium enrichment efforts, according to US, Iranian, and Omani officials.
Heightened geopolitical risk has fueled concerns about potential supply disruptions, supporting the recent surge in oil prices.
At the same time, renewed optimism around US-China trade relations added upward momentum to prices by boosting expectations of stronger demand among market participants.
In a post on his Truth Social account Wednesday, US President Donald Trump announced a tentative agreement with China, stating it would require final approval from both himself and Chinese President Xi Jinping.
Trump said the US would impose a total of 55% in tariffs, while China would face 10%.
“Full magnets, and any necessary rare earths, will be supplied, up front, by China,” Trump wrote, adding that the US would uphold its side of the deal, including allowing Chinese students to study at American universities.
The announcement follows a series of tariff escalations earlier this year. In April, the US began implementing significant tariffs on Chinese imports, but in May, both sides agreed to a broad rollback of those measures for an initial 90-day period.
Meanwhile, the oil rig count in the US decreased by 3 this week, according to the latest data released by oilfield services company Baker Hughes on Friday.
The number of oil rigs, an indicator of short-term production in the country, fell to 439 for the week ending June 13. The number of US oil rigs dropped by 49 compared to one year ago. #Oil Rises for Second Week as Israel, Iran Tensions Escalate NCC, Stakeholders Tackle Rural Connectivity Challenges
