File photo: The raw exporting infrastructure of Iran has been spared so far and most of the fall-out is limited to shipping | Photocredit: Turar Kazangapov
Oil stabilized, after having jumped to the highest in almost five months on Tuesday, because speculation the US can participate in the attack of Israel on Iran, concerned the disruptions of the supply in Western Asia.
Brent traded above $ 76 per barrel after closing 4.4 percent higher in the previous session, while West Texas Intermediate was almost $ 75. President Donald Trump met his national security team on Tuesday, after demanding the “unconditional surrender” of Iran and warned of a possible attack against the leader of the country – Ayatollah Ali Khamenei – in a social media post.
The rough exporting infrastructure of Iran has been spared so far and most of the fall-out is limited to shipping. West -Asia produces about a third of the oil in the world and a broader conflict could generate prices even higher.
The greatest care for the oil market revolves around the Strait of Hormuz, although there are no signs that Iran is trying to disturb shipping through the narrow waterway. About a fifth of the world’s daily raw output goes through the Zeestraat at the entrance to the Persian Gulf.
“Trump’s question about the” unconditional surrender of Iran “and threats against her supreme leader signal diplomacy is gone,” said Charu Chanana, main investment strategist at Saxo Markets Ltd. In Singapore. “Any disruption of Iranian exports, or a sausage-case scenario block of Hormuz, can send prices greatly higher.”
The hostilities have rattled worldwide markets, with investors looking for ports in assets such as gold and volatility in oil that is for a highest highest point. There has been a leap in covering by rough producers, and the volume of futures and options that have changed hand has risen.
At the end of last week, Israel launched surprise attacks on the nuclear sites of Iran, but American weapons are considered crucial to achieve a more complete destruction of Tehran’s atomic program than everything it can do alone.
Prime Minister Benjamin Netanyahu has tried to attract the US – who has offered defensive support against Iranian rocket fire – deeper in the conflict. He told ABC News on Monday that the countries share a common enemy in Iran and that it is in the interest of America to support Israel.
Iran has prepared rockets and other military equipment for strikes on American bases in the middle -old when the nation is the war of Israel against the country, the New York Times reported, with reference to non -created American officials who have assessed intelligence reports.
In the meantime, the figures from the American industry showed that the rough stocks of the country fell by more than 10 million barrels last week. It would be the biggest drawing since last summer if it was confirmed by official data later on Wednesday.
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Published on June 18, 2025
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