Oil prices climb as Israel-Iran conflict heightens supply disruption fears
TOKYO: Oil prices climbed in early Asian trade on Monday after Israel and Iran launched fresh attacks on Sunday, heightening fears that escalating battle could trigger a broader regional conflict and widely disrupt oil exports from the Middle East.
Brent crude futures were up $1.70, or 2.3%, to $75.93 a barrel by 2253 GMT, while U.S. West Texas Intermediate crude futures gained $1.62, or 2.2%, to $74.60. They had surged more than $4 earlier in the session. Both benchmarks settled 7% higher on Friday, having surged more than 13% during the session to their highest levels since January. The latest exchange of strikes between Israel and Iran resulted in civilian casualties and intensified fears of a broader regional conflict, with both militaries urging civilians on the opposing side to take precautions against further strikes.
The latest developments have stoked concerns about disruptions to the
, a vital shipping passage.
About
a fifth
of the world's total oil consumption passes through the strait, or some 18 to 19 million barrels per day (bpd) of oil, condensate and fuel.
U.S. President Donald Trump said on Sunday he hopes Israel and Iran can broker a
ceasefire
, but said sometimes countries have to fight it out first. Trump said the U.S. will continue to support Israel but declined to say if he asked the U.S. ally to pause its strikes on Iran. German Chancellor Friedrich Merz said he hoped a meeting of the Group of Seven leaders convening in Canada on Sunday would reach an agreement to help resolve the conflict and keep it from escalating. Meanwhile, Iran has told mediators Qatar and Oman that it is not open to negotiating a ceasefire while under Israeli attack, an official briefed on the communications told Reuters on Sunday, as the two foes launched fresh attacks and raised fears of a wider conflict.
Iran, a member of the Organization of the Petroleum Exporting Countries, currently produces around 3.3 million bpd, and exports more than 2 million bpd of oil and fuel.
The spare capacity of OPEC and its allies, including Russia, to pump more oil to offset any disruption is roughly equivalent to Iran's output, according to analysts and OPEC watchers.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
an hour ago
- The Sun
OPEC to continue investing in fossil fuels despite growing sustainability and energy transition initiatives
KUALA LUMPUR: The Organisation of the Petroleum Exporting Countries (OPEC) will continue to invest in fossil fuel production, despite the growing momentum behind sustainability initiatives and the global energy transition. OPEC secretary general, Haitham Al Ghais said the organisation advocates a more balanced investment strategy to safeguard the stability of energy security and affordability. 'Sometimes we get carried away talking about net zero and energy transition. At OPEC, we believe in a balanced approach. We must transition and address climate change, but not at the expense of energy security or affordability. 'One of the key factors we consistently stress is the importance of continued investment, as this is a long-lead-time and capital-intensive industry,' he said. He was speaking at a panel session titled 'Enabling Asia's Future Energy Ecosystem' at Energy Asia 2025, here today. Haitham emphasised that OPEC is not opposed to renewable energy, although it is often perceived as being at odds with it. 'We do not dismiss renewables. On the contrary, many OPEC members are embracing renewable energies. However, we recognise that renewables alone will not suffice. That is why our approach to the energy transitions must be multipath. 'There is no single pathway. We need all sources of energy and technology to complement and support one another, especially those that can help reduce emissions,' he said. According to Haitham, the oil industry requires a staggering US$17.4 trillion in investment, or around US$640 billion annually. 'Today, oil still represents 30 per cent of the global energy mix. When combined with gas, this figure rises to about 56 to 57 per cent. 'In terms of volume, we are seeing oil demand hit a new record each year. This year, we are forecasting oil demand to exceed 104 million barrels a day,' he added.
The Sun
an hour ago
- The Sun
OPEC to continue investing in fossil fuels
KUALA LUMPUR: The Organisation of the Petroleum Exporting Countries (OPEC) will continue to invest in fossil fuel production, despite the growing momentum behind sustainability initiatives and the global energy transition. OPEC secretary general, Haitham Al Ghais said the organisation advocates a more balanced investment strategy to safeguard the stability of energy security and affordability. 'Sometimes we get carried away talking about net zero and energy transition. At OPEC, we believe in a balanced approach. We must transition and address climate change, but not at the expense of energy security or affordability. 'One of the key factors we consistently stress is the importance of continued investment, as this is a long-lead-time and capital-intensive industry,' he said. He was speaking at a panel session titled 'Enabling Asia's Future Energy Ecosystem' at Energy Asia 2025, here today. Haitham emphasised that OPEC is not opposed to renewable energy, although it is often perceived as being at odds with it. 'We do not dismiss renewables. On the contrary, many OPEC members are embracing renewable energies. However, we recognise that renewables alone will not suffice. That is why our approach to the energy transitions must be multipath. 'There is no single pathway. We need all sources of energy and technology to complement and support one another, especially those that can help reduce emissions,' he said. According to Haitham, the oil industry requires a staggering US$17.4 trillion in investment, or around US$640 billion annually. 'Today, oil still represents 30 per cent of the global energy mix. When combined with gas, this figure rises to about 56 to 57 per cent. 'In terms of volume, we are seeing oil demand hit a new record each year. This year, we are forecasting oil demand to exceed 104 million barrels a day,' he added.
The Sun
2 hours ago
- The Sun
Strait of Hormuz a concern, but oil industry remains stable
KUALA LUMPUR: The Israel-Iran conflict will not necessarily hurt the oil industry or price mechanisms of the commodity, said Prime Minister Datuk Seri Anwar Ibrahim. He made the statement after holding discussions with the Secretary-General of the Organisation of the Petroleum Exporting Countries (OPEC), Haitham Al Ghais, and major oil industry players on the sidelines of the Energy Asia 2025 conference today. 'Of course, they are monitoring the situation closely, but it does not necessarily hurt the industry or price mechanisms (of the commodity). We hope the conflict can be resolved much earlier,' he said. When asked about the impact of the conflict on the energy industry, Anwar stated that there are concerns about the potential closure of the Strait of Hormuz, a vital route for the export of oil and liquefied natural gas, as well as a key trade route for the Middle East region. At the same time, Anwar also announced major investments by Total, Italy-based ENI, and Saudi Aramco, which he said reflected confidence in Petronas' capabilities. 'Several key agreements related to investments in Malaysia will be signed at the Energy Asia 2025 Conference, which will be held over three days,' he added. Also taking place at Energy Asia is a closed-door session involving global chief executive officers and top-level leaders from key sectors such as oil and gas, energy, technology, finance, and professional services. This aims to chart a collective path to stimulate investment, enhance coordination, and accelerate the adoption of technology to drive Asia's energy transition. The Energy Asia 2025 Conference, themed 'Delivering Asia's Energy,' and being held from June 16–18, serves as a timely platform for Malaysia and the region to assess progress toward energy transition goals and reinforce national commitments toward achieving net-zero carbon emissions. The event is also seen as highly relevant amid the intersection of economic diversification and sustainable development, as countries shift from oil to renewable energy (RE) and adopt new technologies such as hydrogen and carbon capture. Earlier, Anwar delivered the keynote address and officiated the event, which will feature 180 prominent speakers from around the world and attract more than 4,000 delegates, including policymakers, energy professionals, and industry leaders. Among the main agenda items of the conference are a plenary session titled 'Energy Present, Energy Future: Pathways for Asia's Just Transition,' followed by a leadership dialogue - 'Energy at the Crossroads: Policies, Technologies and Investments.'
