Crude oil prices rose in early trading on Monday morning, driven by escalating tensions in the Middle East following the US attack on nuclear facilities in Iran and Tehran’s threat to close the Strait of Hormuz, raising fears of supply disruptions.
Brent crude futures for August delivery rose 5.7 percent to $81.09 a barrel before retreating to $79.60.
US West Texas Intermediate crude futures for August delivery also rose 5.6 percent to $78 a barrel, before retreating to $76.20 minutes after the start of trading.
These movements come amid anticipation of global market reactions to developments in the escalation against Iran, given the importance of the Strait of Hormuz, which is a vital passageway for global oil exports.
The Strait of Hormuz lies between Iran to the north and the UAE and Oman to the south. It connects the Arabian Gulf to the north and the Gulf of Oman and the Arabian Sea to the south.
Approximately 40 percent of the world’s seaborne oil, 20 percent of liquefied natural gas, and 22 percent of basic commodities pass through it.
-Advertisement-
On Sunday morning, the United States, not content with providing military, intelligence, and logistical support for the Israeli aggression against Iran, launched an airstrike against the strategically important Fordow, Natanz, and Isfahan facilities, claiming that the Iranian nuclear program had been “ended” by this strike.
Following the US attack on the nuclear facilities, Esmail Kowsari, a member of the Iranian Parliament’s National Security Committee, said that Parliament had reached the conclusion of the need to close the Strait of Hormuz, but that the final decision rests with the Supreme National Security Council.
Kowsari confirmed that closing the Strait of Hormuz is on the agenda, and that it will certainly take place when necessary, according to Iranian media.
Since June 13, Israel has targeted nuclear facilities, missile bases, military leaders, and nuclear scientists in Iran, which has responded by striking Israeli military and intelligence headquarters with ballistic missiles and drones, resulting in deaths and injuries on both sides.
