Global oil prices have soared and stock futures have tumbled following the US and Israeli military strikes on Iran that killed Supreme Leader Ayatollah Ali Khamenei, prompting retaliatory strikes
Global oil prices have already risen following attacks in the Middle East after the US and Israel launched attacks on Iran over the weekend.
About 15 million barrels of crude oil per day – about 20% of the world’s oil – are shipped through the Strait of Hormuz, making it the most critical oil chokepoint in the world, according to Rystad Energy. Tankers traveling through the strait, which is bordered by Iran to the north, carry oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the UAE and Iran.
West Texas Intermediate, the light, sweet crude produced in the United States, was selling for about $72 a barrel on Sunday evening, up about 8% from its trading price of about $67 on Friday, according to CME Group data.
A barrel of Brent crude, the international standard, was trading around $79 a barrel on Sunday evening, according to FactSet, up about 8% from Friday’s trading price of $72.87, which at the time was a seven-month high.
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The price spike occurred almost immediately after the military action, as stock futures plunged in overnight trading, causing alarm among stock investors. Futures on the Dow Jones fell 517 points, about 1%, while similar figures were recorded on the S&P and NASDAQ, while gold futures rose 2% in response to the oil price rise.
It comes as Iran continues retaliatory strikes in response to US and Israeli strikes that led to the death of Ayatollah Ali Khamenei on Saturday. At least three civilians have been killed in the UAE.
US President Donald Trump announced on Saturday that the US and Israel carried out a joint military operation against Iran overnight, which resulted in the death of Iranian Supreme Leader Ayatollah Ali Khamenei.
Iran launched retaliatory strikes on Israeli and US military bases across the Middle East in response to the attack, killing several dozen, including more than 50 primary school children.
Trump urged the Iranian people to seize this rare opportunity to overthrow his religious fundamentalist regime, while the Iranian government vowed to unleash devastating attacks for what it described as a criminal attack, reports the Express-USA.
In a video statement on Truth Social, President Trump vowed to “avenge” U.S. military deaths and deliver “the most punishing blow to the terrorists who have waged a war on essentially civilization.”
“Combat operations are continuing at full speed and will continue until all our objectives are achieved,” he said in the six-minute segment as he returned to Washington this evening.
The president continued to say that there will be “sadly probably more” American casualties, adding: “That’s the way it is.”
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