Oil Prices Surge To Five-Month High As Middle East Fears Mount
Oil prices rallied sharply on Tuesday, with West Texas Intermediate (WTI) crude rising 4.4% to settle at US$74.92 a barrel, hitting its highest level since January amid intensifying fears of a broader conflict in the Middle East.
Traders rushed into energy markets following reports that the US could deepen its involvement in Israel's ongoing military strikes on Iran. Former President Donald Trump's public threats and a high-level national security meeting fuelled market speculation of imminent escalation.
The geopolitical jitters also pushed up oil market volatility, with a key gauge jumping to a three-year high.
Analysts noted that while the Federal Reserve is expected to keep rates steady at its upcoming policy meeting, elevated energy prices could complicate its efforts to maintain a disinflationary path.
'The Fed is walking a tightrope,' said Seema Shah of Principal Asset Management. 'Higher oil prices could become a risk factor if they feed into broader inflation.'
Brent crude prices, while not detailed in this session, also saw significant upward movement in tandem with WTI. The crude market's rally comes at a time when economic data from the US is flashing early signs of strain, adding another layer of uncertainty heading into the second half of the year.
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The Star
11 minutes ago
- The Star
US bombing of Iranian nuclear sites sparks worldwide condemnation
This handout satellite picture provided by Maxar Technologies and taken on June 22, 2025, shows Iran's Fordow Fuel Enrichment Plant (FFEP), northeast of the city of Qom, after US strikes on the site. President Donald Trump said US air strikes early on Sunday, June 22 "totally obliterated" Iran's main nuclear sites, as Washington joined Israel's war with Tehran in a flashpoint moment for the Middle East. -- Photo by Satellite image ©2025 Maxar Technologies / AFP KUALA LUMPUR, June 22 (Bernama) -- A wave of condemnation has followed the United States' recent airstrikes on Iranian nuclear facilities, with global powers and regional states warning of a widening conflict and urging an immediate return to diplomacy. According to Anadolu Ajansi (AA), China strongly condemned the US for targeting Iranian nuclear sites safeguarded by the International Atomic Energy Agency (IAEA). In an official statement, the Foreign Ministry said the strikes "seriously violate the purposes and principles of the UN Charter' and have intensified tensions in the Middle East. Beijing called for dialogue and restraint from all parties. Saudi Arabia voiced deep concern, describing the attack as a violation of Iran's sovereignty. In a statement, the Foreign Ministry urged all parties to pursue de-escalation and called on the international community to intensify efforts toward a political resolution. Oman said the strikes constituted a "serious violation of international law and the UN Charter.' The Foreign Ministry stressed Iran's right to develop peaceful nuclear energy under international supervision and warned that continued escalation could widen the conflict. Lebanese President Joseph Aoun said the attacks risk expanding tensions that threaten stability across the region. He called for restraint and serious negotiations, stressing Lebanon's unwillingness to bear the cost of further conflict. Iraq condemned the US strikes, calling them an act of escalation that "goes beyond the borders of any country.' Government spokesman Basim al-Awadi warned that military solutions would only lead to destruction and instability. Qatar expressed deep concern, warning that further escalation could lead to "catastrophic consequences' for the region. It called for an immediate halt to hostilities and urged renewed diplomatic engagement. Egypt warned of grave consequences resulting from the escalation, with its Foreign Ministry calling for respect for international law and a peaceful resolution to the crisis. Latin American leaders from Chile, Cuba, Venezuela, Colombia, and Bolivia condemned the US airstrikes on Iranian nuclear facilities, describing them as violations of international law and a threat to global stability. Pakistan condemned the strikes as a violation of international norms and reaffirmed Iran's right to defend itself under the UN Charter. Islamabad expressed concern over the deteriorating situation and called for restraint. France expressed concern over the US attacks, with Foreign Minister Jean-Noel Barrot stating on X that Paris was not involved in the operation. He urged all parties to avoid widening the conflict and to prioritise diplomatic solutions. Bahrain shifted to online learning and remote work in response to rising tensions, advising citizens to avoid unnecessary travel. The Interior Ministry cited public safety concerns amid heightened regional risks. European Council President Antonio Costa urged restraint and compliance with international law, stating that diplomacy is the only viable path to peace. He warned against actions that could endanger nuclear safety. Switzerland called for an immediate return to negotiations and full respect for the UN Charter. The Swiss Foreign Ministry said the escalating conflict poses a serious threat to civilian lives and infrastructure. Ireland's Deputy Prime Minister Simon Harris warned that the risk of a wider Iran-Israel conflict is "more real than ever.' He stressed the need for de-escalation and highlighted the safety of Irish peacekeepers in Lebanon. German Chancellor Friedrich Merz called on Iran to begin immediate talks with the US and Israel to avoid further bloodshed. He urged a diplomatic solution to prevent broader conflict. Indian Prime Minister Narendra Modi spoke with Iranian President Masoud Pezeshkian and urged "immediate' de-escalation. Modi reiterated that diplomacy remains the only path toward regional peace and stability. Turkiye said it is deeply concerned over the consequences of the US strikes on Iran's nuclear facilities. The Foreign Ministry emphasised that peace must be sought through dialogue, not armed confrontation. - Bernama
Malay Mail
an hour ago
- Malay Mail
What now for Iran after US strikes? — Ng Chien Chern
JUNE 22 — Today marks the United States' entry into war against Iran after two weeks of fighting between Israel and the latter. Donald Trump has floated the idea of using the United States' proprietary bunker-busting bomb to destroy Iran's underground uranium-enrichment facilities at Fordow. Saturday's strike dispelled any remaining doubts about whether Trump, who had always portrayed himself as an anti-war president, would employ such a drastic move and risk dragging the US into another 'forever war'. With its back against the wall, Iran now faces only a handful of options in response to the latest development. For some time, Iran has warned against US involvement in its conflict with Israel or risked a regional conflagration. However, it has few cards to play following the assassination of many top brass military personnel on June 13 and the debilitating attack on its missile infrastructure by Israel. While Iran is believed to have massive stockpiles of ballistic missiles, a protracted war of attrition is unlikely to end in the regime's favour — especially when its proxies such as Hezbollah in Lebanon, the Houthis in Yemen, and Hamas in Gaza have been severely weakened, rendering it alone in the region. Nevertheless, Iran still wields some leverage against the United States; in particular, it sits in a strategic location to enact a blockade on the Strait of Hormuz, which would result in soaring oil prices. Roughly 20 per cent of the world's petroleum passes through this narrow strait. Countries like China, India and Japan, which are reliant on the oil flowing out of the Persian Gulf, are particularly sensitive to such a price shock. Similarly, the US is not immune to the spike in oil prices, as it can stoke domestic inflation. A protester with a US dollar note taped over her mouth participates in a demonstration in support of Iran and Palestinians in Gaza, and against the actions of Israel and the United States in Sydney on June 22, 2025. — AFP pic On the other hand, sealing off the strait would almost certainly alienate Iran from whatever diplomatic goodwill remains. This would bolster not only the United States' but Israel's justification that Iran indeed poses a threat to the region and should be pressured into full surrender. However, when push comes to shove, Iran may still do the unthinkable to put the United States under international pressure to scale back its attack. Iran may also opt for a more calibrated retaliation against the United States by attacking its military installations in the region. A limited attack may demonstrate to international audiences that Iran does not yield to foreign aggression, which in turn signals to Israel that it retains sufficient capability and capacity to continue the fight. But every act of retaliation risks provoking further escalation with severe casualties, as Trump warned, 'any retaliation will be met with force far greater than what was witnessed tonight'. That brings us to Iran's final, starkest option: capitulation and de-escalation to preserve the survival of its current regime. Faced with the very real prospect of regime collapse, the Ayatollah regime could forswear its nuclear enrichment programme in exchange for a ceasefire. While this would leave hardliners furious and undermine Iran's narrative of resistance, it might be the only way to preserve the Islamic Republic. If the bunker-busting bomb dropped by the US has indeed obliterated the facilities and set back the development of its nuclear weapons for years, further defiance would serve no purpose in the interest of regime survival. Iran is at a crossroads now. Its Supreme Leader, Ayatollah Ali Khamenei, is allegedly sheltering in a bunker and has picked his successor in the event of his assassination. Its proxies are weakened. Although the current Israeli attack has also riled up deep-seated patriotism among Iranians, the regime remains deeply unpopular at home. Tehran may yet attempt a Hail Mary to slay the Goliath that is the US — but the odds are stacked against it. Its next move will no doubt shape the future of Iran. * This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
Barnama
an hour ago
- Barnama
US Lawmakers Slam Trump For 'Unilateral' Strike On Iran Without Congressional Approval
U.S. President Donald Trump delivers an address to the nation accompanied by U.S. Vice President JD Vance, U.S. Secretary of State Marco Rubio and U.S. Defense Secretary Pete Hegseth, at the White House in Washington, D.C., U.S. June 21, 2025, following U.S. strikes on Iran's nuclear facilities. REUTERS/Carlos Barria/Pool U.S. President Donald Trump delivers an address to the nation accompanied by U.S. Vice President JD Vance, U.S. Secretary of State Marco Rubio and U.S. Defense Secretary Pete Hegseth, at the White House in Washington, D.C., U.S. June 21, 2025, following U.S. strikes on Iran's nuclear facilities. REUTERS/Carlos Barria/Pool WASHINGTON, June 22 (Bernama-Anadolu) -- The United States (US) lawmakers blasted President Donald Trump's "unilateral" action Saturday to strike Iran without seeking congressional authorisation, Anadolu Ajansi (AA) reported. US House Minority Leader Hakeem Jeffries said Trump 'failed to seek congressional authorisation for the use of military force and risks American entanglement in a potentially disastrous war in the Middle East." His statement came after Trump said American forces completed "very successful" airstrikes on three Iranian nuclear sites, Fordo, Natanz and Esfahan, amid fears of a wider conflagration in the region. bootstrap slideshow Jeffries said Trump promised to bring peace to the Middle East, but he "has failed to deliver on that promise." "Congress must be fully and immediately briefed in a classified setting," he said, adding that Trump shoulders "complete and total" responsibility for any adverse consequences that flow from "his unilateral military action." Sen. Ed Markey said the attack was "illegal and unconstitutional." "This attack was not approved by Congress and holds dangers for all Americans. The American people do not want another endless war in the Middle East," Markey said, adding a diplomatic solution remains "the best way" to prevent Iran from acquiring a nuclear weapon. "Trump's illegal action raises the risk of escalation into a wider regional war with grave risks for U.S. troops and personnel and civilians in the region," he said, urging Trump to begin ceasefire talks with Iran and Israel. Rep. Pramila Jayapal said the authority to declare war belongs "solely" to Congress.
