Oil Steadies as Trump Spurs Concerns Over Middle East Escalation
Oil steadied after rallying around 10% since Israel started its attacks on Iran last week, as speculation the US may join the conflict stoked concerns about supply disruptions in the Middle East.
Brent traded near $76 a barrel, while West Texas Intermediate was above $74 after closing at the highest level in almost five months on Tuesday. President Donald Trump demanded Iran's 'UNCONDITIONAL SURRENDER' and warned of a possible strike against the country's leader — Ayatollah Ali Khamenei — in a social media post, before meeting with his national security team.
Iran's crude-exporting infrastructure has been spared so far, and most of the fallout has been confined to shipping. The Middle East produces around a third of the world's oil and a wider conflict could drive prices even higher.
The hostilities have rattled global markets, with investors seeking havens in assets such as gold, and oil volatility surging to a three-year high. Brent's prompt spread has spiked, signaling concerns around tightening supply, and options are more bullish than after Russia's invasion of Ukraine in 2022.
The biggest concern for the oil market centers on the Strait of Hormuz, although there are no signs that Tehran is seeking to disrupt shipping through the narrow waterway at the entrance to the Persian Gulf. About a fifth of the world's crude output passes through the strait, including from Saudi Arabia.
'Trump's demand for Iran's 'unconditional surrender' and threats against its supreme leader signal diplomacy is off the table,' said Charu Chanana, chief investment strategist at Saxo Markets Ltd. in Singapore. A 'worst-case scenario blockade of Hormuz, could send prices sharply higher,' she added.
Israel launched surprise attacks on Iran's nuclear sites late last week, but American weapons are seen as crucial to achieving a more complete destruction of Tehran's atomic program than anything it can do alone.
Prime Minister Benjamin Netanyahu has sought to draw the US — which has provided defensive support against Iranian missile fire — deeper into the conflict. He told ABC News on Monday that the countries share a common enemy in Iran, and that it's in America's interest to support Israel.
Oil could break above $80 a barrel on headlines of US involvement, said Chris Weston, the head of research at Pepperstone Group Ltd. The shape of the futures curve suggests that people are pricing in a much tighter market, he added.
The gap between Brent's two nearest December contracts — a key indicator on long-term balances — has significantly widened since the attacks and was almost $3 a barrel in a bullish backwardation structure. Prior to the conflict, it was in a bearish contango pattern, signaling expectations of ample supply.
Meanwhile, US industry figures showed the nation's crude inventories fell by more than 10 million barrels last week. That would be the biggest decline since last summer if confirmed by official data later on Wednesday.
To get Bloomberg's Energy Daily newsletter in your inbox, click here.
This article was generated from an automated news agency feed without modifications to text.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
26 minutes ago
- Time of India
Donald Trump speaks to Netanyahu: Tel Aviv says 'refrained' from further strikes; 'won't violate ceasefire if Israel won't,' says Iran
Donald Trump and Benjamin Netanyahu (ANI) Isreali prime minister Benjamin Netanyahu's office stated on Tuesday that the country has 'refrained' from further strikes on Iran, after a phone call with US president Donald Trump. This comes after 12 days of ongoing conflict between Iran and Israel. 'Following President Trump's conversation with Prime Minister Netanyahu, Israel refrained from further strikes', the statement said. Earlier on Tuesday, Israel had accused Iran of violating the ceasefire brokered by US president Donald Trump, with the Israeli defence minister, Israel Katz, vowing to 'respond forcefully' without delay. In retaliation for the attack, Israel had 'destroyed a radar installation near Tehran', the statement said, as reported by AFP. Iranian authorities had denied responsibility for firing missiles aimed at Israel. 'Israel. Do not drop those bombs. If you do it is a major violation', Donald Trump posted on his Truth Social account following the attacks. Trump had said, 'I did not like that Israel 'unloaded ' immediately after agreeing to ceasefire', and added, 'I am not happy with Iran either'. Iranian president, Masoud Pezeshkian, said on Tuesday that, 'If the Zionist regime does not violate the ceasefire, Iran will not violate it either', during a phone call with Malaysian prime minister Anwar Ibrahim. Just before the ceasefire had started, Israel had fired around 100 munitions targeting several sites in Tehran, as reported by AP. Earlier on Monday, Trump had announced a 'complete and total ceasefire' between Iran and Israel, phased over for 24 hours after which 'the war will be considered, ENDED!', as posted by him on his Truth Social platform. Data suggests that 28 people have been killed, with 1,347 affected in Israel. According to Iranian State TV, a high-profile nuclear scientist named Mohammad Reza Sedighi Saber had been killed in an Israeli strike early on Tuesday.
Time of India
29 minutes ago
- Time of India
Never Before Ever: US President lashes out at Israel for violating ceasefire with Iran. See how did Trump criticize Netanyahu
US President Donald Trump strongly criticized Israel for military action taken after a ceasefire agreement with Iran was announced. The comments were made during a press interaction before Trump left for a NATO summit. The ceasefire had been brokered by the United States and Qatar. Trump Questions Israel's Response Trump said he was not pleased with Israel's decision to launch airstrikes after a truce was reached. He referred to a single Iranian missile fired after the agreed start time of the ceasefire. Trump said the rocket missed its target and did not cause harm. He questioned Israel's decision to respond. He repeated that Israel's action seemed disproportionate. Trump said both countries needed to act with caution. He stressed that one rocket that did not hit anything should not be a reason to break the deal. Israeli Military Action and Timeline The Israeli Defense Forces reported two missiles were fired at northern Israel. The incident happened three and a half hours after the ceasefire started. These attacks followed earlier Iranian missile strikes that had killed four people in Beersheba. In response, Israel's Air Force launched a small strike on an Iranian radar site near Tehran. This took place while Trump was speaking to the media. Live Events Trump Warns Against Further Strikes Trump used his Truth Social platform to warn Israel. He told them to stop any attacks and bring their aircraft back. He wrote that bombing Iran would be a major violation of the ceasefire. He posted several messages demanding that planes turn around and return to base. Trump said Israel must not strike Iran. He described a symbolic gesture by Israeli pilots, waving at Iran before heading home. Also Read: NYT Mini Crossword Today: Hints, answers and tips for solving June 24, 2025 puzzle Trump Blames Both Sides Trump told reporters that both Iran and Israel were at fault. He said it was unclear if the violations were intentional. He expressed concern about Israel launching bombs shortly after the truce was announced. He said that dropping large amounts of bombs right after a ceasefire agreement was not acceptable. Trump said Israel should not have launched strikes within the first hour of the truce. Netanyahu and Trump Speak Trump later spoke by phone with Israeli Prime Minister Benjamin Netanyahu. According to sources, the conversation was direct and serious. Trump reportedly told Netanyahu what was necessary to maintain the truce. Netanyahu's office later said the call was positive. They said Trump praised Israel's achievements. The office claimed Trump believed the ceasefire would hold. After the call, Israel refrained from further attacks. Israeli Leadership and Ceasefire Terms Earlier in the day, Israel had said any ceasefire violations would lead to forceful responses. But after Trump's comments and the call with Netanyahu, Israeli ministers were told not to make public statements. There were no further major strikes by Israel after that instruction. Also Read: NYT Connections Today: Hints and Answers for puzzle #744 of June 24, 2025 Trump Clarifies Position on Iran Trump also spoke about his stance on Iran's government. Just two days before, he hinted at supporting regime change. But on Tuesday, he said he opposed it. He said that replacing Iran's regime could lead to chaos. The White House clarified that regime change was not a US goal. Background of the Conflict The conflict escalated on June 13 when Israel targeted Iranian military leaders and nuclear facilities. Israel said the attacks were necessary to prevent Iran from carrying out threats. The US also bombed three nuclear sites in Iran. Iran then fired missiles at a US airbase in Qatar. No casualties were reported. Iran also launched 550 missiles and 1,000 drones at Israel. The strikes killed 28 people and injured thousands. Missiles hit residential and public buildings, including a hospital. FAQs Why did Trump criticize Israel after the ceasefire? Trump said Israel responded too strongly to a single Iranian rocket after the ceasefire had started and stressed that this could risk the agreement. What action did Iran take after Israel's airstrikes? Iran launched hundreds of missiles and drones at Israel, causing deaths and damage, following Israeli attacks on Iranian military and nuclear sites.
Indian Express
29 minutes ago
- Indian Express
400kg of uranium missing after US strike on Iranian nuclear sites, JD Vance confirms
A 400kg stockpile of uranium—enough to build up to 10 nuclear weapons—is unaccounted for following last week's US airstrikes on three Iranian nuclear facilities, United States Vice President JD Vance told ABC News. The uranium, enriched to 60 per cent, was stored across Iran's key sites and is now believed to have been moved ahead of the strike. During the conversation, Vance said that he thought the Iranian nuclear sites were 'severely damaged or obliterated', but added he was 'not exactly sure'. Vance said the Trump administration will engage with Iran in the coming weeks regarding the 900 pounds (approximately 400kg) of highly enriched uranium that went missing after last week's US strikes on Iranian nuclear sites. Speaking to ABC News, Vance said, 'We're going to work in the coming weeks to ensure that we do something with that fuel, and that's one of the things that we're going to have conversations with the Iranians about.' He confirmed that the key objective of the operation was to target the Fordow nuclear facility. 'That was the objective of the mission, to destroy that Fordow nuclear site and, of course, do some damage to the other sites as well. But we feel very confident that the Fordow nuclear site was substantially set back, and that was our goal,' Vance told the broadcaster. Enrichment to 60 per cent brings the uranium close to weapons-grade, which is around 90 per cent. While it isn't currently usable in a nuclear bomb, analysts say it represents a powerful bargaining chip for Iran if or when nuclear deal talks with the US resume. Israeli officials told The New York Times that Iran may have moved the uranium stockpile and equipment to a secret location before the attack. Satellite images taken before the US strikes showed a convoy of 16 trucks outside the Fordow nuclear facility, a heavily fortified site built inside a mountain and considered nearly immune to missile attacks. Those images led Israel to push for US support. The United States responded by deploying B-2 Spirit bombers armed with GBU-37 'bunker buster' bombs, which were dropped on Sunday morning on Fordow, Natanz, and Isfahan. Post-strike satellite photos showed significant damage to all three facilities, but the trucks had vanished. It remains unclear what was moved and where, but US and Israeli intelligence believe the uranium and key research materials were relocated to another underground facility near Isfahan, Iran's ancient capital. Rafael Grossi, the chief of the International Atomic Energy Agency (IAEA), confirmed that the agency last inspected the site a week before the strikes. Grossi has called for inspections to resume immediately, warning the UN Security Council that continued military escalation threatens diplomatic solutions. 'It is essential the IAEA resumes inspections as soon as possible,' Grossi said. 'This indispensable work must not be delayed.' Iran has repeatedly claimed its nuclear program is for peaceful purposes, but Israel has long argued otherwise. Tel Aviv warned that Tehran was nearing a 'point of no return' and could soon assemble a nuclear weapon. Following the attacks, Iran threatened to withdraw from the Non-Proliferation Treaty (NPT). Deputy Foreign Minister Takht Ravanchi dismissed speculation that the program was abandoned, saying, 'No one can tell us what to do…' The US narrative has been less consistent. A CNN report following Israel's first wave of missile strikes said US intelligence assessed Iran was not actively building a nuclear bomb and was still about three years away from having one. The strikes, according to CNN sources, only set Iran's program back by a few months. However, Tulsi Gabbard, the US Director of National Intelligence, reversed her earlier assessment in which she told Congress Iran wasn't pursuing weapons. On Saturday, she said Iran could produce nuclear weapons 'within weeks,' a shift that followed President Donald Trump calling her initial assessment 'wrong.' Trump had given Iran a two-week deadline to sign a new nuclear safeguard deal, but acted earlier after intelligence confirmed Israel could not neutralise the facilities without US military support. 'We're not involved in it (but) it's possible we could…' Trump told ABC Sunday morning, just hours before the US strike, urging Iran and Israel to 'reach an accord before it is too late.' After the mission, Trump declared the operation a success. 'Iran's nuclear program has been completely and totally obliterated,' he said, referring to the 'bunker busters' and a barrage of Tomahawk missiles used as decoys in what was dubbed Op Midnight Hammer—a 37-hour operation led by seven B-2 bombers flying radio silent from Missouri.
