Oil falls 1% after hitting 5-month high amid Mideast conflict
HOUSTON: Oil prices fell 1% on Monday after touching a five-month high as markets tried to gauge the impact on transit of oil and gas via the Strait of Hormuz after U.S. airstrikes against Iran at the weekend.
Brent crude futures were down 70 cents, or 0.9%, at $76.31 a barrel by 10:46 a.m. ET (1446 GMT). U.S. West Texas Intermediate crude (WTI) fell 76 cents, or 1%, to $73.09.
Earlier in the session, Brent and WTI touched five-month highs of $81.40 and $78.40 respectively, before seesawing between positive and negative territory throughout the European trading session.
U.S. President Donald Trump said he had 'obliterated' Iran's main nuclear sites in strikes over the weekend, joining an Israeli assault in an escalation of conflict in the Middle East as Tehran vowed to defend itself.
Israel carried out fresh strikes against Iran on Monday including on capital Tehran and the Iranian nuclear facility at Fordow, which was also a target of the U.S. attack.
At least two supertankers made U-turns near the Strait of Hormuz following U.S. military strikes on Iran, ship tracking data shows, as more than a week of violence in the region prompted vessels to speed, pause, or alter their journeys.
About a fifth of global oil supply flows through the strait. However, the risk of a complete shutdown is low, analysts have said.
'A full blockade would hurt Iran as well, given its dependency on crude exports to Asia - but asymmetric attacks on ships or terminals remain a very real possibility,' said Fawad Razaqzada, market analyst at City Index.
Oil prices settle lower
'There's been no disruption to supply — yet. But the market knows all too well how quickly that could change,' Razaqzada said.
Iran, which is OPEC's third-largest crude producer, said on Monday that the U.S. attack on its nuclear sites expanded the range of legitimate targets for its armed forces and called Trump a 'gambler' for joining Israel's military campaign against the Islamic Republic.
Meanwhile, Trump expressed a desire to see oil prices kept down amid fears that ongoing fighting in the Middle East could cause them to spike. On his Truth Social platform, he addressed the U.S. Department of Energy, encouraging 'drill, baby, drill' and saying, 'I mean now.'
Investors are still weighing up the extent of the geopolitical risk premium, given the Middle East crisis has yet to crimp supply.
HSBC expects Brent prices to spike above $80 a barrel to factor in a higher probability of a Strait of Hormuz closure, but to recede again if the threat of disruption does not materialise, the bank said on Monday.
Iraq's state-run Basra Oil Company said international oil majors including BP, TotalEnergies and Eni had evacuated some staff members working in oilfields.
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Express Tribune
an hour ago
- Express Tribune
Iran walks the talk
This frame grab shows the remnants of an Iranian missile intercepted over Qatar, as it lies on a pavement near a fence. Photo: AFP Iran announced it had launched missiles at a major US base in Qatar on Monday in retaliation for American strikes on key nuclear facilities, with explosions ringing out in Doha and projectiles seen streaking overhead. Qatar, which lies 190 kilometres (120 miles) south of Iran and is home to the largest US military facility in the Middle East, said its "air defences successfully intercepted a missile attack targeting Al Udeid Air Base". President Donald Trump dismissed Iran's retaliatory strikes that targeted a US base in Qatar as "very weak," while welcoming "early notice" given by Tehran. "Iran has officially responded to our Obliteration of their Nuclear Facilities with a very weak response, which we expected, and have very effectively countered," Trump posted on his Truth Social platform, after multiple missiles were launched toward the Al Udeid base in Qatar. "I want to thank Iran for giving us early notice, which made it possible for no lives to be lost, and nobody to be injured," he added. The US president called for Iran to seek peace with Israel, saying he did not expect further retaliation from Tehran against the United States after its attack on an American base. Iran has "gotten it all out of their 'system,' and there will, hopefully, be no further HATE," he said. "Perhaps Iran can now proceed to Peace and Harmony in the Region, and I will enthusiastically encourage Israel to do the same," Trump added. Iran's National Security Council confirmed having targeted the base "in response to the US aggressive and insolent action against Iran's nuclear sites and facilities". In its statement, the council said the number of missiles used "was the same as the number of bombs that the US had used", in a signal that it had calibrated its response to be directly proportional. After more than a week of Israeli strikes on nuclear and military targets across Iran, the United States joined its ally's campaign on Sunday, carrying out attacks on three key Iranian nuclear facilities, including on an underground uranium enrichment facility at Fordo using massive bunker-busting bombs. With international concern mounting that Israel's campaign in Iran could lead to regional spilloverconcern that only intensified after the US strikesFrench President Emmanuel Macron said after the Iranian retaliation that "the spiral of chaos must end". Iran's security council maintained that its "action does not pose any threat to our friendly and brotherly country, Qatar". But Qatari foreign ministry spokesman Majed Al-Ansari said his country "reserves the right to respond directly in a manner proportional to the nature and scale of this blatant aggression". Its much larger neighbour Saudi Arabia, historically a rival of Iran, condemned Tehran's attack "in the strongest terms", and offered "all its capabilities to support the sisterly State of Qatar in any measures it takes". AFP reporters heard blasts in central Doha and in Lusail, north of the capital, on Monday evening, and saw projectiles moving across the night sky. A US defence official said Al Udeid was "attacked by short-range and medium-range ballistic missiles originating from Iran", adding there were no immediate reports of casualties. Ansari said the base had been evacuated as a precaution ahead of time. Iran's Revolutionary Guard Corps said six missiles had hit the base, according to state media. Iranian official press agency IRNA had reported that missiles were also launched at a US base in Iraq, though the National Security Council made no mention of Iraq in its statement. Iraqi security and military sources told AFP that Iran had not attacked US bases there "so far". Earlier in the day Qatar had announced the temporary closure of its airspace in light of "developments in the region", while foreign embassies there including that of the United States had warned their citizens to shelter in place. Neighbouring Bahrain and Kuwait also temporarily halted air traffic in the wake of the missile attack. President Donald Trump boasted that Sunday's strikes had "obliterated" Iran's nuclear capabilities, but other officials said it was too soon to assess the impact on Iran's atomic programme. Just as Iran was announcing the new attacks, blasts were heard in the north of Tehran, according to an AFP journalist, who reported yellow flashes typical of Iranian air defences in the sky over the capital shortly before 9:00 pm (1730 GMT). Earlier in the day Israel reported carrying out what it said were its most powerful strikes yet on Tehran. Iran, in turn, fired missile barrages at Israel. Israeli Defence Minister Israel Katz said the military hit sites in Tehran including Evin prison, which Katz said "holds political prisoners and regime opponents", as well as command centres for the domestic Basij paramilitary and the Revolutionary Guards. Iranian media and the Israeli military said Israel also struck Fordo on Monday "in order to obstruct access routes" to the site. Israel's national electricity company reported "damage near a strategic infrastructure facility" in the south that disrupted the power supply, without naming the location or specifying the cause. The country's military censorship rules bar the publication of some details about damage in Israel. Iranian media, meanwhile, said Israel's strikes hit a power supply system in Tehran, triggering temporary outages. Israeli strikes on Iran have killed more than 400 people, Iran's health ministry has said. Iran's attacks on Israel have killed 24 people, according to official figures. China urged both Iran and Israel to prevent the conflict from spilling over, warning of potential economic fallout. US Secretary of State Marco Rubio called on China to help deter Iran from closing the Strait of Hormuz, a chokepoint for one-fifth of the world's oil supply. After the Pentagon stressed the goal of US intervention was not to topple the Iranian government, Trump openly toyed with the idea. "If the current Iranian Regime is unable to MAKE IRAN GREAT AGAIN, why wouldn't there be a Regime change???" Trump posted on his Truth Social platform. His press secretary Karoline Leavitt said on Monday that Trump was "still interested and engaging in" diplomacy. She suggested, however, that Iranians could overthrow their government if it did not agree to a diplomatic solution. Top US general Dan Caine has said early assessments indicated the US strikes caused "extremely severe damage" at all three nuclear sites. Rafael Grossi, director of the International Atomic Energy Agency (IAEA), told an emergency meeting of the UN Security Council that it had not been possible to assess the underground damage at Fordo. "Armed attacks on nuclear facilities should never take place," he added. Iran has consistently denied seeking an atomic bomb, and Grossi has said there was no evidence to suggest it was doing so despite the Islamic republic being the only non-nuclear armed state to enrich uranium to 60 percent. Meanwhile, Tehran is considering suspending its cooperation with the International Atomic Energy Agency, the speaker of Iran's parliament said Monday. In parliament, "we are seeking to pass a bill to suspend Iran's cooperation with the IAEA", speaker Mohammad-Bagher Ghalibaf said on X, accusing the UN's nuclear watchdog of lacking objectivity and professionalism. The IAEA in June adopted a resolution condemning Tehran's failure to cooperate with the agency with regard to its nuclear programme.
Express Tribune
an hour ago
- Express Tribune
Putin slams attack on Tehran
Russian President Vladimir Putin meets with journalists following a phone call with US President Donald Trump at the Sirius educational centre near Sochi in the Krasnodar region, Russia on May 19, 2025. PHOTO: REUTERS Russian President Vladimir Putin on Monday slammed attacks on Iran as "unprovoked" and "unjustified" in a meeting with Tehran's Foreign Minister Abbas Araghchi, but did not announce any concrete support to his key ally in the Middle East. Moscow is a crucial backer of Iran, but has not swung forcefully behind its partner even as the United States launched strikes on its nuclear facilities over the weekend. "This absolutely unprovoked aggression against Iran is unjustified," Putin said in televised remarks to Araghchi at the start of their meeting. The Kremlin's spokesman Dmitry Peskov downplayed the exchange after the talks by saying "they were unlikely to be effective" during such a "heated moment". Araghchi later said the meeting was "very good" and that Russia's stance on the issue remained "firm", noting its role in the UN Security Council. He did not provide further details on the talks with the Russian leader. Russia's Deputy Foreign Minister Sergey Ryabkov said revealing details of the Putin-Araghchi meeting would have been "irresponsible" and that Russia and Iran were working on "many directions" when asked if Tehran requested military aid from Russia. Since Israel launched its wave of strikes on June 13, triggering Iran to respond with missiles and drones, Russia has not publicly offered military help to Tehran. Russia was "making efforts to help the Iranian people", Putin said in the meeting, without elaborating. Asked what specific support Russia might offer, Peskov told reporters: "It all depends on what Iran needs. We have offered our mediation services." Putin has pitched himself as a mediator between Iran and Israel, an idea rejected by US President Donald Trump last week. Peskov also said the strikes on Iran would not affect bilateral relations between Moscow and Washington -- with the Kremlin seeking a rapprochement with the United States since Donald Trump returned to power -- saying they were "different issues".
Express Tribune
an hour ago
- Express Tribune
Protest staged against US strikes on Iran
There have been monthly protests in the British capital since the start of the war between Israel and Hamas. Photo AFP On the call of Jamaat-e-Islami (JI) Ameer Hafiz Naeem ur Rehman, a nationwide Day of Protest was observed on Monday against US terrorism targeting Iran. In Karachi, JI Youth staged a demonstration outside the Karachi Press Club. Protesters raised slogans such as Death to America and Israel, and We stand with Iran and Palestine. They carried placards denouncing the US-Israel alliance as a nexus of evil and murderers of the Ummah. JI Vice Ameer Muslim Pervez, JI Youth President Hashim Abdali, and other leaders, condemned the US airstrikes and accused President Donald Trump of proving America to be the "biggest global terrorist." They warned that the joint aggression by the US and Israel is not only a direct threat to Iran, but also to regional stability and Pakistan's security. Speakers criticised the Pakistani government's recommendation for a Nobel Prize for Donald Trump, calling it "shameful and hypocritical."
