Oil prices continued to rise in the international market on Monday amid escalating military strikes between Israel and Iran.
Brent crude futures rose by $1.12, or 1.5 per cent, to $75.35 a barrel by 0019 GMT, while US West Texas Intermediate (WTI) crude increased by $1.10, or 1.5 per cent, to $74.08.
Earlier in the session, both benchmarks had jumped more than $4. On Friday, they settled 7 per cent higher after surging over 13 per cent intraday — their biggest spike since January.
“Buying was driven by the ongoing Israel-Iran conflict, with no resolution in sight,” said Toshitaka Tazawa, an analyst at Fujitomi Securities. “But as we saw on Friday, some selling emerged on fears the market may be overreacting.”
Analysts say markets are closely watching for any damage to Iran’s oil infrastructure from Israeli strikes. Concerns about a possible blockade of the Strait of Hormuz could push prices even higher.
Iran, a key member of the Organization of the Petroleum Exporting Countries (OPEC), currently produces around 3.3 million barrels per day (bpd) and exports more than 2 million bpd of crude and fuel. Analysts note that OPEC and its allies, including Russia, hold spare production capacity roughly equal to Iran’s current output, which could help offset any supply shortfall.
