Oil rates proceed to increase amid Israel-Iran conflict
(MENAFN) Global oil prices surged nearly 5% due to the escalating military conflict between Israel and Iran, coupled with US President Donald Trump’s call for Iran’s immediate and unconditional surrender. Brent crude rose 4.4% on Tuesday to $76.45 per barrel, marking a more than 10% increase since Israel’s initial missile strikes against Iran last week.
According to ABC, the latest price hike followed a series of posts by Trump on Truth Social, where he labeled Iranian Supreme Leader Ayatollah Ali Khamenei an “easy target” and claimed that the US and its allies maintain “complete and total control” of Iranian airspace.
Saxo Bank analyst Ole Hansen noted that while the market is mainly concerned about potential disruptions through the Strait of Hormuz, he personally assesses the risk as low. The strait, a vital shipping route for about 20% of the world’s oil, borders Iran to the north. Recently, Iranian MP and Revolutionary Guard commander Esmail Kousari said Tehran is seriously considering closing the passage. Meanwhile, Iraqi Foreign Minister Fuad Hussein warned that oil prices could skyrocket to $200–$300 per barrel if military conflict erupts in the region.
On Tuesday, two oil tankers collided and caught fire in the strait, with no injuries or oil spills reported. The UAE Coast Guard evacuated 24 crew members from the Adalynn tanker, while the fire on the Front Eagle was extinguished.
British maritime security firm Ambrey classified the collision as an accident unrelated to regional tensions, but Reuters cited increased electronic interference linked to the Israel-Iran conflict around the incident.
The ongoing hostilities began last Friday when Israel launched airstrikes aimed at preventing Iran from developing nuclear weapons. Iran retaliated with missile attacks, and both nations have continued exchanging strikes.
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