Oil prices rose in early trading Monday amid fears of disruption in global energy markets following a U.S. strike on Iranian nuclear facilities, AFP reported Monday.
Iran, the world’s ninth-largest oil producer at 3.3 million barrels per day, exports about half of its output and consumes the rest domestically.
Analysts warn that any retaliation by Tehran could include moves to shut down the Strait of Hormuz, a vital chokepoint through which one-fifth of the world’s oil supply passes.
Brent crude and U.S. West Texas Intermediate (WTI) initially surged over 4%, hitting their highest levels since January. However, gains narrowed by midday GMT: Brent was up 2.2% at $79.20 per barrel, while WTI rose 2.1% to $75.98.
Economists at MUFG Bank warned of “significant uncertainty” around the conflict’s scope and duration, projecting a potential $10-per-barrel price spike. Pepperstone’s Chris Weston noted that Iran may destabilize global markets without fully closing the Strait, simply by signaling its capacity to disrupt shipping.
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