Oil prices up amid Iran conflict
Oil prices in recent days have hit their highest point in months amid the escalations between the U.S. and Iran.
The price of U.S. benchmark WTI crude oil was around $74 per barrel on Monday morning following the weekend U.S. attack on Iran's nuclear facilities. Late last week, prices rose as high as $77 per barrel as tensions rose between the two countries and amid the conflict between Iran and Israel.
U.S. gasoline prices have risen in recent days, with the national average at $3.22 cents per gallon, according to the American Automobile Association. That's up from $3.14 a week ago and $3.20 a month ago.
At the start of the year, WTI prices were as high as $80 per barrel but had fallen closer to the $60 per barrel range in recent months.
While the price of oil is lower than it has been in recent weeks, it is still well below 2022's surge that followed Russia's invasion of Ukraine and came along with the recovery from the COVID-19 pandemic.
At that time, oil prices were reaching $120 per barrel.
Iran is a significant producer of oil. Due to sanctions, it only sells to certain countries, but it still contributes to the overall global supply.
The country was also considering a closure of the Strait of Hormuz, through which much of the global oil supply is shipped, state media reported on Sunday.
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CNBC
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New York Post
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The Wall Street giant forecasts Brent crude to average $95 in Q4 2025 under this scenario and cites a 52% probability that Iran will close the strait this year, based on Polymarket data. 5 The Strait of Hormuz is a critical waterway through which millions of barrels of oil are transported daily. Given that the Strait of Hormuz handles about 20 million barrels daily, any prolonged disruption would pose serious risks to global energy markets. The US strikes targeting Fordo, Natanz and Isfahan marked a sharp escalation in Washington's backing of Israel's push to cripple Iran's nuclear ambitions. Tehran swiftly condemned the attacks and vowed to protect its sovereignty. In response, Iran's parliament reportedly approved a resolution to close the strait, though any final decision rests with the country's Supreme National Security Council. 5 The Post covered the US strike on Iran over the weekend. Some tankers have been instructed to hold off entering the strait until tensions ease, according to Andy Critchlow of S&P Global Commodity Insights. 'We have indications from shippers that they are putting tankers and vessels on standby,' Critchlow said Monday, adding that LNG suppliers in the region have asked buyers to delay movements to avoid having ships linger in the Gulf. Japanese shipping giant Nippon Yusen introduced a temporary standby policy for vessels heading toward the strait, limiting their time in the Gulf when schedules allow, S&P Global Commodity Insights reported. Keep up with today's most important news Stay up on the very latest with Evening Update. Thanks for signing up! Enter your email address Please provide a valid email address. By clicking above you agree to the Terms of Use and Privacy Policy. Never miss a story. Check out more newsletters Although the company hasn't stopped navigation through the region, it's clearly proceeding with caution. Another major Japanese operator, Mitsui OSK Lines, has similarly asked its fleet to minimize time spent in the Gulf following the US airstrikes, according to Reuters. German container shipper Hapag-Lloyd said its vessels continue to transit the strait but warned the situation remains 'unpredictable' and could shift rapidly. A company spokesperson told CNBC that emergency protocols are in place if the conflict worsens. 5 The image above shows the Fordo nuclear facility in Iran after it was targeted by US airstrikes over the weekend. MAXAR Technologies Shipping analysts said that container operations in the Persian Gulf and upper Indian Ocean have not been significantly affected as of Monday morning. But risk assessments are now being conducted continuously. 'All companies access the risk individually — but the current situation requires them all to do so several times a day,' Peter Sand, chief analyst at freight platform Xeneta, told CNBC. 'Staying in close dialogue with national intelligence agencies and their own captains onboard the ships.' Sand added that insurance premiums for ships in the region have 'probably' been raised again in light of Iran's threats. US officials have called on China — Tehran's biggest oil customer — to use its influence to dissuade Iran from blocking the strait. The potential closure would have far-reaching consequences for the global economy, pushing up energy prices, delaying shipments and straining diplomatic ties across the region.
