Oil Prices Inch Higher Amid Stalled US-Iran Nuclear Talks And Supply Uncertainty
Oil prices rose slightly on Tuesday as hopes for a breakthrough in US-Iran nuclear negotiations dimmed, raising concerns over the potential delay in Iranian crude re-entering the global market.
Brent crude futures edged up 12 cents to US$65.66 a barrel by 0008 GMT, while US West Texas Intermediate (WTI) gained 16 cents to US$62.85.
The gains were fuelled by comments from Iran's Deputy Foreign Minister Majid Takhtravanchi, who warned that nuclear talks with the US would 'lead nowhere' if Washington continues to demand a full halt to Tehran's uranium enrichment programme. His remarks came just a day after US special envoy Steve Witkoff reaffirmed that any new agreement must include a ban on uranium enrichment — a critical step in developing nuclear weapons.
Analysts say a deal between the two sides could have added 300,000 to 400,000 barrels per day of Iranian crude to the market, easing global supply constraints. The standoff has instead raised fresh concerns about future supply levels.
However, gains in oil prices were limited by broader economic headwinds, including Moody's downgrade of the US sovereign credit rating, which cast a shadow over demand from the world's largest energy consumer. The ratings agency cut the US government's rating by one notch on Friday, citing concerns over its mounting US$36 trillion debt.
Additional pressure came from slowing industrial output and retail sales in China, the world's top oil importer, reinforcing fears about weakening demand.
Market volatility is expected to persist in the near term, with traders watching closely for developments in US-Iran relations, global tariff tensions, and the ongoing Russia-Ukraine conflict. In a related update, Russian President Vladimir Putin said after a call with Donald Trump that Moscow was willing to work with Ukraine on a draft peace accord, calling recent diplomatic efforts 'on the right track.'
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The Star
19 minutes ago
- The Star
Israel, Iran launch more barrages as Israel aims to wipe out Tehran's nuclear programme
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The Star
19 minutes ago
- The Star
Iran fires back at Israel after onslaught targets nuclear facilities
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Resident Chen Gabizon told AFP he ran to an underground shelter after receiving an alert notification. "After a few minutes, we just heard a very big explosion, everything was shaking, smoke, dust, everything was all over the place," he said. In Iran's capital Tehran early Saturday, fire and heavy smoke billowed from Mehrabad airport, an AFP journalist said, as local media reported a blast in the area. Iran said earlier it had activated its air-defence system and explosions could be heard across the capital. Dozens of people took to the streets of Tehran overnight to cheer their country's military response, with some waving national flags and chanting anti-Israel slogans. Iran's ambassador to the UN said Friday that 78 people had been killed and 320 wounded in the first wave of strikes by Israel. After a day of back-and-forth bombardments, UN chief Antonio Guterres called for the two nations to cease fire. "Enough escalation. Time to stop. Peace and diplomacy must prevail," he wrote on X late Friday. - Calls for dialogue - US officials said they were helping Israel defend against the missile attacks, even as Washington insisted it had nothing to do with Israel's strikes on Iran. US President Donald Trump agreed on a call with UK Prime Minister Keir Starmer that "dialogue and diplomacy" were needed to calm the crisis, Starmer's office said. Trump also spoke with Israel's Prime Minister Benjamin Netanyahu Friday, US officials said, without elaborating. Iran's missile salvo came hours after Israel said its widespread air raids had killed several top Iranian generals, including most of the senior leadership of the Revolutionary Guards' air force. It had launched several rounds of strikes that hit about 200 targets including nuclear facilities and air bases. Iran's supreme leader Ayatollah Ali Khamenei vowed to bring Israel "to ruin" during a televised address. In Israel, Netanyahu issued a statement calling on the Iranian public to unite against their own government. But he also warned more attacks were coming. "In the past 24 hours, we have taken out top military commanders, senior nuclear scientists, the Islamic regime's most significant enrichment facility and a large portion of its ballistic missile arsenal," Netanyahu said. While stressing that it was not involved in the Israeli attacks, the United States warned Iran not to attack its personnel or interests. Tehran nevertheless said Washington would be "responsible for consequences". - Commanders killed - The strikes killed Iran's highest-ranking military officer, armed forces chief of staff Mohammad Bagheri, and the head of the Revolutionary Guards, Hossein Salami, Iranian media reported. Khamenei swiftly appointed new commanders to replace those killed. 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After the first wave of strikes on Friday, Trump urged Iran to "make a deal", adding that Washington was "hoping to get back to the negotiating table". Iran confirmed that above-ground sections of the Natanz enrichment plant had been destroyed, but the International Atomic Energy Agency (IAEA) said radiation levels outside the site "remained unchanged". "Most of the damage is on the surface level," said the Atomic Energy Organisation of Iran's spokesman Behrouz Kamalvandi. Iran said there was only limited damage to the Fordo and Isfahan nuclear sites. The United States and other Western governments have repeatedly accused Iran of seeking a nuclear weapon, an ambition it has consistently denied. Netanyahu said Israeli intelligence had concluded that Iran was approaching the "point of no return" on its nuclear programme. Israel had called for global action after the IAEA accused Iran on Thursday of non-compliance with its obligations. Iran currently enriches uranium to 60 percent, far above the 3.67-percent limit set by a largely moribund 2015 agreement with major powers, but still short of the 90 percent threshold needed for a nuclear warhead. - AFP
Malay Mail
20 minutes ago
- Malay Mail
Oil surges 7pc as Israel-Iran conflict raises supply disruption fears
Oil gains of up to 14 per cent were largest intraday move since 2022 Iran's nuclear facility in Natanz damaged in Israeli attack No impact to oil flows in the region so far, say analysts Israeli attacks kill key Iranian military commanders Trump urges Iran to make a deal over its nuclear programme HOUSTON, June 14 — Oil prices jumped yesterday and settled 7 per cent higher as Israel and Iran traded air strikes, feeding investor worries that the combat could widely disrupt oil exports from the Middle East. Brent crude futures settled at US$74.23 (RM315) a barrel, up US$4.87, or 7.02 per cent, after earlier soaring over 13 per cent to an intraday high of US$78.50, the strongest level since January 27. Brent was 12.5 per cent higher than a week ago. US West Texas Intermediate crude finished at US$72.98 a barrel, up US$4.94, or 7.62 per cent. During the session, WTI jumped over 14 per cent to its highest since January 21 at US$77.62. WTI climbed 13 per cent to its level a week ago. Both benchmarks had their largest intraday moves since 2022 when Russia's invasion of Ukraine caused a spike in energy prices. Israel said it had targeted Iran's nuclear facilities, ballistic missile factories and military commanders on Friday at the start of what it warned would be a prolonged operation to prevent Tehran from building an atomic weapon. Iran has promised a harsh response. Shortly after trading ended yesterday, Iranian missiles hit buildings in Tel Aviv, Israel, according to multiple media reports. Explosions were also heard in southern Israel. US President Donald Trump urged Iran to make a deal over its nuclear programme to put an end to the 'next already planned attacks.' The National Iranian Oil Refining and Distribution Company said oil refining and storage facilities had not been damaged and continued to operate. Iran, a member of the Organisation of the Petroleum Exporting Countries (OPEC), currently produces around 3.3 million barrels per day (bpd), and exports over 2 million bpd of oil and fuel. Spare capacity among 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. The latest developments have also stoked concerns about disruptions to the Strait of Hormuz, a vital shipping passage. 'Saudi Arabia, Kuwait, Iraq and Iran are wholly locked into one tiny passage for exports,' said Rabobank in a note, regarding the Strait. 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. 'Israeli action has so far avoided Iranian energy infrastructure, including Kharg Island, the terminal responsible for an estimated 90 per cent of Iran's crude oil exports,' said Ben Hoff, head of commodity research at Societe Generale. 'This raises the possibility that any further escalation could follow an 'energy-for-energy' logic where an attack on one side's oil infrastructure might invite a retaliatory strike on the other's,' Hoff said. Iran could pay a heavy price for blockage of the Strait of Hormuz, analysts said yesterday. 'Iran's economy heavily relies on the free passage of goods and vessels through the seaway, as its oil exports are entirely sea-based. Finally, cutting off the Strait of Hormuz would be counterproductive to Iran's relationship with its sole oil customer, China, said analysts with JP Morgan. Money managers raised their net long US crude futures and options positions in the week to June 10, the US Commodity Futures Trading Commission (CFTC) said on Friday. The speculator group raise its combined futures and options position in New York and London by 15,157 contracts to 121,911 during the period. Baker Hughes said the number of US oil and natural gas rigs fell for seventh week in a row with the total count down by 35 rigs or 6 per cent below this time last year. The oil rig count fell by three to 439 this week, its lowest since October 2021, while gas rigs slipped by one to 113. In other markets, stocks dived and there was a rush to safe havens such as gold, the US dollar and Swiss franc. — Reuters
