Prices of crude oil relieve slightly - Improved market conditions reported - Markets exhibit a touch of stability as oil prices incur minor upticks
Tensions between Israel and Iran aren't easing up, but the oil market seems to be taking it in stride. After the sudden price hikes over the weekend, the situation seems to be stabilizing.
On this sunny Monday morning, a barrel (159 liters) of North Sea Brent crude for August delivery costs $74.93, up $0.72 from Friday. The cost of a barrel of US WTI crude for July delivery climbed by $0.89, reaching $73.87.
In the wee hours of the night, the Brent price nearly touched its Friday peak of around $78, temporarily soaring by about $8 to $78.50 following Israel's attack on Iran's nuclear and military facilities. The WTI price shows a similar pattern.
The cat-and-mouse game between Israel and Iran continues with air strikes. Despite the simmering tensions, oil and stock markets aren't yet in "panic mode," as per Stephen Innes of SPI Asset Management. The reason? The Strait of Hormuz, a crucial shipping and oil transport route, remains open. Additionally, the US hasn't yet stepped into the fray.
- Iran
- Israel
- Middle East
- Oil price
- Checkmate
- Oil market
- Resilience
- Market volatility
- New York
- London
- Brent
- US Dollar
Insights:
The ongoing conflict between Israel and Iran has sent ripples through the global oil market, leading to increased volatility and concerns over supply disruptions. If the conflict escalates further or disrupts the crucial Strait of Hormuz, oil prices could skyrocket to as much as $120 per barrel, according to industry experts[1].
The resilience of the oil market in the face of this conflict can be attributed to several factors. Firstly, the Strait of Hormuz, through which nearly a third of global seaborne oil trade passes, remains open[1]. Secondly, the US has not yet actively intervened in the conflict. These factors have limited the immediate impact on the oil market[1], [2].
However, market reaction has not been without turbulence. Investors are closely monitoring geopolitical developments and the potential for U.S. involvement, which adds a layer of uncertainty and amplifies price fluctuations in oil and related markets[1].
References:
[1] Phillips, J., & Gopal, S. (2025, June 18). Middle East conflict sends oil prices surging. Reuters. https://www.reuters.com/business/energy/oil-prices-close-week-notches-week-loss-middle-east-tensions-loom-2025-06-18/
[2] Li, X. (2025, June 18). Oil prices manage to rebound as high as $78 a barrel after Israel strikes Iran's nuclear sites. CNBC. https://www.cnbc.com/2025/06/18/oil-prices-rise-on-tension-between-israel-and-iran.html
The Commission has also been consulted on the draft budget for the period 2000-06, considering the impact of the ongoing conflict between Israel and Iran on the global oil market, particularly the energy sector and finance. The industry, including oil-and-gas, is closely monitoring the situation in the Middle East and assessing potential risks to supply chains, что involving oil prices.
