Oil prices have risen on Tuesday due to growing concerns about the possible escalation of the Iran-Israel conflict, which may lead to instability and supply disruptions in the region.
Oil Prices and Market News
Brent crude futures climbed 34 cents, or 0.5%, to $73.57 a barrel by 3:40 UTC. U.S. West Texas Intermediate crude added 29 cents, or 0.4%, to $72.06. Earlier in the session, both benchmarks had gained more than 2%. On Monday, oil prices fell by more than 1% after reports indicated that Iran wanted to end the fighting.
International Response to the Conflict
Concerns returned when U.S. President Donald Trump urged all residents to leave Tehran, accusing Iran’s government of rejecting a deal to curb its nuclear work. At the G7 summit, leaders urged both sides to calm down. French President Emmanuel Macron suggested the U.S. put forward a ceasefire plan, but Trump denied that proposal, stating it was "much bigger than that."
Impact on Traders and Forecasts
Priyanka Sachdeva, a senior market analyst at Phillip Nova, stated that the conflict is weighing on investor sentiment, with traders mindful of war risks. She added that "added volatility and caution ahead of the Fed policy decision" are ensuring higher-paced price reactions in oil. Iran is OPEC’s third-largest oil producer, and traders worry that fighting could reduce its output and drive prices up.
In light of the tense situation in the region, traders remain cautious as they monitor the developments and potential impacts on global energy markets.
