Oil hits five-month high after US attacks key Iranian nuclear sites
SINGAPORE: Oil prices jumped on Monday to their highest since January as the United States' weekend move to join Israel in attacking Iran's nuclear facilities stoked supply worries.
Brent crude futures was up $1.92 or 2.49% at $78.93 a barrel as of 0117 GMT. U.S. West Texas Intermediate crude advanced $1.89 or 2.56% to $75.73.
Both contracts jumped by more than 3% earlier in the session to $81.40 and $78.40, respectively, touching five-month highs before giving up some gains.
The rise in prices came after U.S. President Donald Trump said he had "obliterated" Iran's main nuclear sites in strikes over the weekend, joining an Israeli assault in an escalation of conflict in the Middle East as Tehran vowed to defend itself.
Iran is OPEC's third-largest crude producer.
Market participants expect further price gains amid mounting fears that an Iranian retaliation may include a closure of the Strait of Hormuz, through which roughly a fifth of global crude supply flows.
Iran's Press TV reported that the Iranian parliament had approved a measure to close the strait. Iran has in the past threatened to close the strait but has never followed through on the move.
"The risks of damage to oil infrastructure ... have multiplied," said Sparta Commodities senior analyst June Goh.
Although there are alternative pipeline routes out of the region, there will still be crude volume that cannot be fully exported out if the Strait of Hormuz becomes inaccessible. Shippers will increasingly stay out of the region, she added.
Goldman Sachs said in a Sunday report that Brent could briefly peak at $110 per barrel if oil flows through the critical waterway were halved for a month, and remain down by 10% for the following 11 months.
The bank still assumed no significant disruption to oil and natural gas supply, adding global incentives to try to prevent a sustained and very large disruption.
Brent has risen 13% since the conflict began on June 13, while WTI has gained around 10%.
The current geopolitical risk premium is unlikely to last without tangible supply disruption, analysts said.
Meanwhile, the unwinding of some long positions accumulated following a recent price rally could cap an upside to oil prices, Ole Hansen, head of commodity strategy at Saxo Bank, wrote in a market commentary on Sunday. (Reporting by Siyi Liu in Singapore; Editing by Himani Sarkar and Christopher Cushing)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
27 minutes ago
- Zawya
Noon rolls out Summer support program for riders with cooling gear, hydration, and health checks
Cooling vests, misting trolleys, electrolyte stations, and real-time support for peak summer conditions Regular health checks and hydration drives reinforce noon's commitment to rider safety and dignity Dubai – noon, the region's leading digital marketplace, is stepping up for its riders this summer with a comprehensive welfare initiative focused on protecting their health, comfort, and safety during the hottest months of the year across the UAE and Saudi Arabia. noon is rolling out a wide range of measures to ensure its delivery partners are well-equipped, supported, and cared for during the summer months - both on and off the road. From enhanced health checks to cooling gear and hydration drives, this initiative reflects noon's deep commitment to the people who power its operations every day. Support on the ground this summer includes: noon Minutes: Initiatives include cooling vests, neck protectors, and insulated water bottles. Riders are also provided with heat-resistant uniforms, first aid kits, regular health checks, and electrolyte stations. A 'Need Attention' feature offers real-time support on the road. In partnership with Mai Dubai, noon Minutes supplies over 45,000 gallons of water each month to keep riders hydrated across all dark stores. noon Food: Riders are supported with a full summer care package, including cooling vests, breathable uniforms, hydration kits, and shaded rest stops at hubs and key partner locations like Spinneys and Marina Mall. These stops offer chilled water, beverages, designated parking, and cafeteria access. noon Food riders, including those delivering for NowNow, receive extra perks like thermal bottles and monthly meal distributions. Support also includes flexible shifts, balanced order assignments, real-time on-ground help from field captains, safety training, quick gear replacements, wellness check-ins, and a summer toolkit with cooling towels and sippers to stay safe during peak heat. noon also gently encourages customers to support riders through small gestures - like offering a glass of water - as a simple way to appreciate their effort and dedication. ABOUT was founded with the objective of fostering an ecosystem of regionally based digital companies in order to secure the region's digital landscape's future. noon's mission is to provide customers and companies in the Middle East region with outstanding value and support. On December 12th, 2017, noon launched its consumer platform in the Kingdom of Saudi Arabia and the United Arab Emirates. noon debuted in Egypt in February 2019 and has since evolved to become the largest online shopping destination in the Middle East. Primarily a digital e-commerce platform powered by in-house technological talent, noon has swiftly developed strong native capabilities throughout its marketplace, fulfillment, logistics, and payment systems.
Zawya
27 minutes ago
- Zawya
EDGE recognised as ‘Best Company to Work For' at the Employee Happiness Awards 2025
EDGE wins gold in 'Best Company to Work For' category, further elevating its reputation as an employer of choice for top talents to thrive. Abu Dhabi, UAE: EDGE, one of the world's leading advanced technology and defence groups, has been awarded gold in the 'Best Company to Work For - Large' category at the Employee Happiness Awards 2025 (EHA 2025), a platform that recognises companies and human resources (HR) professionals who promote happiness and well-being in the workplace. The award reflects EDGE's unwavering dedication to HR best practices, employee satisfaction, and constant innovation. Sana Al Daoumi, Senior Vice President of Human Capital, EDGE, said: 'Our relentless pursuit of excellence in HR continues to drive our successes. This award belongs to every team member whose passion, dedication, and care make our culture exceptional. As a testament to our team's hard work and commitment to people-first practices, this award further elevates EDGE as an organisation that values its people and fosters a culture of continuous improvement in HR.' The latest HR award follows EDGE's certification as a Great Place to Work® in December 2024, reinforcing its reputation as an employer of choice and organisation where top talents thrive in a a dynamic, supportive, and innovative workplace. About EDGE Launched in November 2019, the UAE's EDGE is one of the world's leading advanced technology groups, established to develop agile, bold and disruptive solutions for defence and beyond, and to be a catalyst for change and transformation. It is dedicated to bringing breakthrough innovations, products, and services to market with greater speed and efficiency, to position the UAE as a leading global hub for future industries, and to creating clear paths within the sector for the next generation of highly-skilled talent to thrive. With a focus on the adoption of 4IR technologies, EDGE is driving the development of sovereign capabilities for global export and for the preservation of national security, working with front-line operators, international partners, and adopting advanced technologies such as autonomous capabilities, cyber-physical systems, advanced propulsion systems, robotics and smart materials. EDGE converges R&D, emerging technologies, digital transformation, and commercial market innovations with military capabilities to develop disruptive solutions tailored to the specific requirements of its customers. Headquartered in Abu Dhabi, capital of the UAE, EDGE consolidates more than 35 entities into six core clusters: Platforms & Systems, Missiles & Weapons, Space & Cyber Technologies, Trading & Mission Support, Technology & Innovation, and Homeland Security.
Zawya
27 minutes ago
- Zawya
Dollar advances as investors brace for Iran response to US attacks
SINGAPORE/LONDON - The U.S. dollar firmed on Monday as nervy investors sought safety, although the restrained moves suggest markets were waiting for Iran's response to U.S. attacks on its nuclear sites that have exacerbated conflict in the Middle East. Iran said on Monday that the U.S. attack on its nuclear sites expanded the range of legitimate targets for its armed forces and called U.S. President Donald Trump a "gambler" for joining Israel's military campaign against the Islamic Republic. The major moves were in the oil market, with crude prices hitting a five-month high, before dipping to trade lower on the day. The dollar firmed 1% against the yen and was last at 147.450 , at its highest level since May 15. Bank of America strategists said dollar/yen can reprice higher if oil prices remain elevated, noting Japan imports almost all of its petroleum, more than 90% of which comes from the Middle East, while the U.S. is largely energy-independent. The euro fared better, just 0.2% lower at $1.14965 and unchanged after Euro area flash PMIs showed the region's economy flatlined for a second month in June. Slightly improving UK flash PMIs also hit screens but didn't move the dial on sterling, which last fetched $1.34385, just 0.1% lower against the dollar. Meanwhile, the Australian dollar, often seen as a risk proxy, hit a one-month low and was last 0.52% weaker at $0.64180, while the New Zealand dollar sank 0.68% to $0.5926. That left the dollar index, which measures the U.S. currency against six other units, 0.15% higher at 99.065. Carol Kong, currency strategist at Commonwealth Bank of Australia, said the markets are in wait-and-see mode on how Iran responds, with more worries about the positive inflationary impact of the conflict than the negative economic impact. "The currency markets will be at the mercy of comments and actions from the Iranian, Israeli and U.S. governments," Kong said. "The risks are clearly skewed to further upside in the safe haven currencies if the parties escalate the conflict." Iran vowed to defend itself a day after the U.S. dropped 30,000-pound bunker-buster bombs onto the mountain above Iran's Fordow nuclear site. American leaders urged Tehran to stand down while pockets of anti-war protests emerged in U.S. cities. In a step towards what is widely seen as Iran's most effective threat to hurt the West, its parliament approved a move to close the Strait of Hormuz. Nearly a quarter of global oil shipments pass through the narrow waters that Iran shares with Oman and the United Arab Emirates. While the dollar has reprised its role as a safe haven due to the rapid spike in geopolitical risks, the relatively muted moves suggest investors remain wary of going all in on the greenback. The U.S. currency has dropped 8.6% this year against its major rivals as economic uncertainty from President Donald Trump's tariffs and concern over their impact on U.S. growth led investors to scurry for alternatives. Markets are also looking ahead to Fed Chair Jerome Powell's semi-annual testimony to Congress. "In a sharply divided political landscape, Powell is expected to underscore the Fed's independence and reiterate that any rate decision will remain firmly data-dependent," George Vessey, lead FX and macro strategist at Convera, said. Elsewhere bitcoin was up 2.4% in early trade after dropping about 4% on Sunday.
