The fighting has increased the risk of potential disruption to supplies from key Middle East producing region
17 June 2025 - 08:15
byAnjana Anil and Jeslyn Lerh
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Singapore — Oil prices climbed on Tuesday on concerns the Iran-Israel conflict may intensify, raising the risk of further unrest and the potential disruption of oil supply from the key Middle East producing region.
Brent crude futures rose 34c, or 0.5%, to $73.57 a barrel by 3.40am GMT. US West Texas Intermediate (WTI) crude was up 29c, or 0.4%, at $72.06. Both contracts rose more than 2% earlier in the trading session.
Oil prices settled more than 1% lower on Monday on the hope that the conflict would ease after media reports Iran was seeking an end to hostilities.
However, concerns have escalated after US President Donald Trump in a social media post urged “everyone” to evacuate the Iranian capital of Tehran.
Entering its fifth day on Tuesday, the fighting has continued with Iranian media reporting explosions and heavy air defence fire in Tehran. In Israel, air raid sirens sounded in Tel Aviv in response to Iranian missiles.
“The conflict between Iran and Israel is still fresh and brewing, and investor sentiments may still be holding on to the ‘war risks’,” Priyanka Sachdeva, senior market analyst at Phillip Nova, said in an email.
“Added volatility and caution ahead of the Fed policy decision are further ensuring higher-paced price reactions in oil,” Sachdeva added, referring to the US Federal open market committee (FOMC) meeting, which guides interest rate decisions, that begins on Tuesday.
Still, most of the market is focused on the uncertainty around the Iran-Israel hostilities.
Iran is the third-largest producer among members of oil cartel Opec. The concern is the fighting could disrupt its oil supply and raise prices.
US media on Monday night is reporting Trump is proposing renewed talks with Iran on a nuclear deal, even as other reports of an incident involving shipping in the Gulf of Oman highlight the risks to companies moving oil and fuel supplies in the region.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Iran-Israel conflict boosts oil
The fighting has increased the risk of potential disruption to supplies from key Middle East producing region
Singapore — Oil prices climbed on Tuesday on concerns the Iran-Israel conflict may intensify, raising the risk of further unrest and the potential disruption of oil supply from the key Middle East producing region.
Brent crude futures rose 34c, or 0.5%, to $73.57 a barrel by 3.40am GMT. US West Texas Intermediate (WTI) crude was up 29c, or 0.4%, at $72.06. Both contracts rose more than 2% earlier in the trading session.
Oil prices settled more than 1% lower on Monday on the hope that the conflict would ease after media reports Iran was seeking an end to hostilities.
However, concerns have escalated after US President Donald Trump in a social media post urged “everyone” to evacuate the Iranian capital of Tehran.
Entering its fifth day on Tuesday, the fighting has continued with Iranian media reporting explosions and heavy air defence fire in Tehran. In Israel, air raid sirens sounded in Tel Aviv in response to Iranian missiles.
“The conflict between Iran and Israel is still fresh and brewing, and investor sentiments may still be holding on to the ‘war risks’,” Priyanka Sachdeva, senior market analyst at Phillip Nova, said in an email.
“Added volatility and caution ahead of the Fed policy decision are further ensuring higher-paced price reactions in oil,” Sachdeva added, referring to the US Federal open market committee (FOMC) meeting, which guides interest rate decisions, that begins on Tuesday.
Still, most of the market is focused on the uncertainty around the Iran-Israel hostilities.
Iran is the third-largest producer among members of oil cartel Opec. The concern is the fighting could disrupt its oil supply and raise prices.
US media on Monday night is reporting Trump is proposing renewed talks with Iran on a nuclear deal, even as other reports of an incident involving shipping in the Gulf of Oman highlight the risks to companies moving oil and fuel supplies in the region.
Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.