Oil hits five-month high after US hits key Iranian nuclear sites
SINGAPORE (Reuters) -Oil prices jumped on Monday to their highest since January as Washington's weekend move to join Israel in attacking Iran's nuclear facilities stoked supply worries.
Brent crude futures rose $1.88 or 2.44% at $78.89 a barrel as of 1122 GMT. U.S. West Texas Intermediate crude advanced $1.87 or 2.53% at $75.71.
Both contracts jumped by more than 3% earlier in the session to $81.40 and $78.40, respectively, five-month highs, before giving up some gains.
The rise in prices came after 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.
Iran is OPEC's third-largest crude producer.
Market participants expect further price gains amid mounting fears that an Iranian retaliation may include a closure of the Strait of Hormuz, through which roughly a fifth of global crude supply flows.
Iran's Press TV reported that the Iranian parliament approved a measure to close the strait. Iran has in the past threatened to close the strait but has never followed through on the move.
"The risks of damage to oil infrastructure ... have multiplied," said Sparta Commodities senior analyst June Goh.
Although there are alternative pipeline routes out of the region, there will still be crude volumes that cannot be fully exported out if the Strait of Hormuz becomes inaccessible. Shippers will increasingly stay out of the region, she added.
Brent has risen 13% since the conflict began on June 13, while WTI has gained around 10%.
The current geopolitical risk premium is unlikely to last without tangible supply disruptions, analysts said.
Meanwhile, the unwinding of some of the long positions accumulated following a recent price rally could cap an upside to oil prices, Ole Hansen, head of commodity strategy at Saxo Bank, wrote in a market commentary on Sunday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
USA Today
21 minutes ago
- USA Today
Oil hits five-month high after US strikes key Iranian nuclear sites
SINGAPORE - Oil prices jumped on Monday, local time, to their highest since January as Washington's weekend move to join Israel in attacking Iran's nuclear facilities stoked supply worries. Brent crude futures rose $1.88 or 2.44% at $78.89 a barrel as of 1122 GMT. U.S. West Texas Intermediate crude advanced $1.87 or 2.53% at $75.71. Both contracts jumped by more than 3% earlier in the session to $81.40 and $78.40, respectively, five-month highs, before giving up some gains. The rise in prices came after 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. Iran is OPEC's third-largest crude producer. Market participants expect further price gains amid mounting fears that an Iranian retaliation may include a closure of the Strait of Hormuz, through which roughly a fifth of global crude supply flows. Iran's Press TV reported that the Iranian parliament approved a measure to close the strait. Iran has in the past threatened to close the strait but has never followed through on the move. "The risks of damage to oil infrastructure ... have multiplied," said Sparta Commodities senior analyst June Goh. Although there are alternative pipeline routes out of the region, there will still be crude volumes that cannot be fully exported out if the Strait of Hormuz becomes inaccessible. Shippers will increasingly stay out of the region, she added. Brent has risen 13% since the conflict began on June 13, while WTI has gained around 10%. The current geopolitical risk premium is unlikely to last without tangible supply disruptions, analysts said. Meanwhile, the unwinding of some of the long positions accumulated following a recent price rally could cap an upside to oil prices, Ole Hansen, head of commodity strategy at Saxo Bank, wrote in a market commentary on Sunday. (Reporting by Siyi Liu in Singapore; Editing by Himani Sarkar)
Yahoo
21 minutes ago
- Yahoo
Middle Eastern Dividend Stocks To Watch In 2023
The Middle Eastern stock markets have shown resilience, with most Gulf bourses ending higher despite geopolitical tensions involving U.S. strikes on Iran, as investors seem to have already factored in potential conflicts and are focusing on regional economic stability supported by robust oil flows and sovereign wealth funds. In this environment, dividend stocks can be appealing for income-focused investors seeking stable returns amidst market volatility, as they often represent companies with strong cash flows and solid financial foundations. Name Dividend Yield Dividend Rating Turkiye Garanti Bankasi (IBSE:GARAN) 3.81% ★★★★★☆ Saudi National Bank (SASE:1180) 5.93% ★★★★★☆ Saudi Awwal Bank (SASE:1060) 6.40% ★★★★★☆ Riyad Bank (SASE:1010) 6.68% ★★★★★☆ National Bank of Ras Al-Khaimah (P.S.C.) (ADX:RAKBANK) 7.56% ★★★★★☆ Emirates NBD Bank PJSC (DFM:EMIRATESNBD) 4.73% ★★★★★☆ Emaar Properties PJSC (DFM:EMAAR) 8.06% ★★★★★☆ Commercial Bank of Dubai PSC (DFM:CBD) 5.97% ★★★★★☆ Arab National Bank (SASE:1080) 6.31% ★★★★★☆ Anadolu Hayat Emeklilik Anonim Sirketi (IBSE:ANHYT) 7.94% ★★★★★☆ Click here to see the full list of 75 stocks from our Top Middle Eastern Dividend Stocks screener. Underneath we present a selection of stocks filtered out by our screen. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Gulf Medical Projects Company (PJSC) operates hospitals in the United Arab Emirates and has a market cap of AED1.45 billion. Operations: Gulf Medical Projects Company (PJSC) generates revenue from segments including Investments, contributing AED37.79 million, and Health Services & Others, which accounts for AED690.34 million. Dividend Yield: 7.2% Gulf Medical Projects Company (PJSC) offers a dividend yield of 7.21%, placing it in the top 25% of dividend payers in the AE market. However, its dividends are not well covered by earnings, with a high payout ratio of 125.5%, and have been unreliable over the past decade due to volatility and lack of growth consistency. Despite recent earnings growth, dividends remain inadequately supported by earnings, though they are covered by cash flows with a reasonable cash payout ratio of 73.1%. Navigate through the intricacies of Gulf Medical Projects Company (PJSC) with our comprehensive dividend report here. The valuation report we've compiled suggests that Gulf Medical Projects Company (PJSC)'s current price could be quite moderate. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Fourth Milling Company operates in the Kingdom of Saudi Arabia, focusing on the production, packaging, and sale of flour and its byproducts, animal feed, and bran products with a market cap of SAR1.89 billion. Operations: The company's revenue is primarily derived from its Food Processing segment, which generated SAR633.61 million. Dividend Yield: 6.2% Fourth Milling Company offers a dividend yield in the top 25% of Saudi Arabian payers, supported by a sustainable payout ratio of 67.9%, and cash flow coverage at 49.9%. Recent earnings growth and strategic investments, like the SAR 265 million expansion in Al-Kharj city, signal potential for future revenue increases. The company recently appointed KPMG as auditors ensuring financial transparency but has limited dividend history to assess long-term reliability or growth trends. Dive into the specifics of Fourth Milling here with our thorough dividend report. Our comprehensive valuation report raises the possibility that Fourth Milling is priced lower than what may be justified by its financials. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Mizrahi Tefahot Bank Ltd., along with its subsidiaries, offers a variety of international, commercial, domestic, and personal banking services to individuals and businesses both in Israel and abroad, with a market cap of ₪55 billion. Operations: Mizrahi Tefahot Bank Ltd. generates revenue through its diverse range of banking services, catering to both individual and business clients within Israel and on an international scale. Dividend Yield: 4% Mizrahi Tefahot Bank's dividends are well covered by earnings, with a current payout ratio of 40% and forecasted to remain sustainable at 45.6% in three years. Despite a dividend yield of 3.98%, which is below the top tier in Israel, the bank's recent earnings growth of 13.7% supports its payout capacity. However, past dividend payments have been volatile and unreliable over the last decade, raising concerns about long-term consistency for investors seeking stable income streams. Click to explore a detailed breakdown of our findings in Mizrahi Tefahot Bank's dividend report. Insights from our recent valuation report point to the potential overvaluation of Mizrahi Tefahot Bank shares in the market. Navigate through the entire inventory of 75 Top Middle Eastern Dividend Stocks here. Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up. Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ADX:GMPC SASE:2286 and TASE:MZTF. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
22 minutes ago
- Yahoo
Should Weakness in SUTL Enterprise Limited's (SGX:BHU) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
SUTL Enterprise (SGX:BHU) has had a rough month with its share price down 3.4%. However, the company's fundamentals look pretty decent, and long-term financials are usually aligned with future market price movements. Specifically, we decided to study SUTL Enterprise's ROE in this article. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for SUTL Enterprise is: 13% = S$8.4m ÷ S$66m (Based on the trailing twelve months to December 2024). The 'return' is the amount earned after tax over the last twelve months. So, this means that for every SGD1 of its shareholder's investments, the company generates a profit of SGD0.13. Check out our latest analysis for SUTL Enterprise Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. To start with, SUTL Enterprise's ROE looks acceptable. Especially when compared to the industry average of 7.0% the company's ROE looks pretty impressive. This probably laid the ground for SUTL Enterprise's significant 24% net income growth seen over the past five years. We believe that there might also be other aspects that are positively influencing the company's earnings growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio. As a next step, we compared SUTL Enterprise's net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 42% in the same period. Earnings growth is a huge factor in stock valuation. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if SUTL Enterprise is trading on a high P/E or a low P/E, relative to its industry. The high three-year median payout ratio of 52% (implying that it keeps only 48% of profits) for SUTL Enterprise suggests that the company's growth wasn't really hampered despite it returning most of the earnings to its shareholders. Moreover, SUTL Enterprise is determined to keep sharing its profits with shareholders which we infer from its long history of eight years of paying a dividend. On the whole, we do feel that SUTL Enterprise has some positive attributes. The company has grown its earnings moderately as previously discussed. Still, the high ROE could have been even more beneficial to investors had the company been reinvesting more of its profits. As highlighted earlier, the current reinvestment rate appears to be quite low. So far, we've only made a quick discussion around the company's earnings growth. So it may be worth checking this free detailed graph of SUTL Enterprise's past earnings, as well as revenue and cash flows to get a deeper insight into the company's performance. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data
