Oil prices rise as Iran-Israel conflict fans supply worries
June 17 (Reuters) - Oil prices climbed over 2% on Tuesday as Iran-Israel tension intensified and U.S. President Donald Trump urged "everyone" to evacuate Tehran, increasing the prospect of deepening unrest in the region and disruption to oil supply.
The Brent crude futures contract was up $1.17, or 1.6%, at $74.4 a barrel as at 0005 GMT and U.S. West Texas Intermediate crude was up $1.34, or 1.87%, at $73.11 - both having risen more than 2% earlier in the trading session.
Both contracts settled more than 1% lower on Monday on hope of easing geopolitical tension after media reports of Iran seeking an end to hostilities.
However, the conflict took a turn for the worse on its fifth day on Tuesday as Iranian media reported explosions and heavy air defence fire in the capital Tehran. Over in Israel, air raid sirens sounded in Tel Aviv in response to Iranian missiles.
Iran is the third-largest producer among members of the Organization of the Petroleum Exporting Countries. Hostilities could disrupt its supply of oil and thereby increase prices.
On Monday, an Israeli strike hit Iran's state broadcaster and the head of the U.N. nuclear watchdog also indicated extensive damage to Iran's biggest uranium enrichment plant.
Trump said Iran should have signed a nuclear deal with the U.S. before Israeli strikes began and that he believes Iran now wants to reach an agreement.
Easing of U.S. sanctions as part of any deal would allow Iran to export more oil, weighing on global crude prices.
Elsewhere, OPEC and allies including Russia - or OPEC+, which pumps about half of the world's oil - said on Monday it expected the global economy to remain resilient in the second half of the year. It also trimmed its forecast for growth in oil supply from the U.S. and other non-OPEC+ countries in 2026.
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Reuters
19 minutes ago
- Reuters
G7 expresses support for Israel, calls Iran source of instability
WASHINGTON, June 16 (Reuters) - The Group of Seven nations expressed support for Israel in a statement, opens new tab issued late on Monday and labeled its rival Iran as a source of instability in the Middle East, with the G7 leaders urging broader de-escalation of hostilities in the region. The air war between Iran and Israel - which began on Friday when Israel attacked Iran with air strikes - has raised alarms in a region that had already been on edge since the start of Israel's military assault on Gaza in October 2023. "We affirm that Israel has a right to defend itself. We reiterate our support for the security of Israel," G7 leaders said in the statement. "Iran is the principal source of regional instability and terror," the statement added and said the G7 was "clear that Iran can never have a nuclear weapon." Israel attacked Iran on Friday in what it called a preemptive strike to prevent Tehran from developing nuclear weapons. Since then the two Middle Eastern rivals have exchanged blows, with Iranian officials reporting over 220 deaths, mostly civilians, while Israel said 24 civilians were killed. Iran denies seeking nuclear weapons and has said it has the right to develop nuclear technology for peaceful purposes, including enrichment, as a party to the Nuclear Non-Proliferation Treaty. Israel, which is not a party to the NPT, is the only country in the Middle East widely believed to have nuclear weapons. Israel does not deny or confirm that. President Donald Trump planned to leave the G7 summit in Canada early to return to Washington due to the Middle East situation. The United States has so far maintained that it is not involved in the Israeli attacks on Iran although Trump said on Friday the U.S. was aware of Israel's strikes in advance and called them "excellent." Washington has warned Tehran not to attack U.S. interests or personnel in the region. "We urge that the resolution of the Iranian crisis leads to a broader de-escalation of hostilities in the Middle East, including a ceasefire in Gaza," the G7 statement said, adding the nations were also ready to coordinate on safeguarding stability in energy markets. An Israeli strike hit Iran's state broadcaster on Monday while Trump said in a social media post that "everyone should immediately evacuate Tehran." Separately, U.S. Secretary of State Marco Rubio also discussed the Israel-Iran war in phone calls with his British, French and European Union counterparts on Monday. Washington said Trump was still aiming for a nuclear deal with Iran.
Daily Mail
23 minutes ago
- Daily Mail
Javier Bardem sparks backlash with anti-Israel rant on The View as he is cut off after claiming he's suffering
Actor Javier Bardem was cut off on The View after suggesting he 'suffers on a daily basis' for the people of Gaza and said Israel was committing 'genocide.' The Oscar-winner was speaking to conservative panelists Alyssa Farah Griffin and Sara Haines, who wear yellow pins everyday to support Israeli hostages being held in Gaza. 'I see your [pins] and, of course, they have to return those hostages obviously,' Bardem said. 'But the situation in Gaza has come to a term now where I cannot express the pain that I, along with many millions of people there, suffer on a daily basis watching those horrible images of children being murdered and starving to death.' The actor stated his case for Israel committing 'genocide' based on his belief that international law and human rights experts and even Holocaust survivors agree with him. 'First of all, because the impunity that is taking Israel in doing these actions, and the lack of action on any government of course the back up of the United States with all those weapons and the economics, and also the silence of Europe, is creating a scenario where there is such impunity that if we really don't do something about that we are going towards, well, what is happening now,' he said. Host Whoopi Goldberg clearly wanted to get to a commercial break but Bardem tried to continue. 'And also, with this I will finish, the most important thing is to not lose the humanity and really denounce when we have to denounce and who we have to denounce,' he said. Abruptly, the show cut back to Goldberg, who said: 'Javier, come back.' The long-running ABC chatfest then went straight to commercial to a somewhat muted applause. A source at the show told Decider that they were simply running out of time and needed to head to break. However, several viewers were alarmed by Bardem's statements. 'Again, The View becomes a hot bed for political hatred and antisemitism,' wrote Nicholas Fondacaro of MRC and Newsbusters. 'Actor Javier Bardem claims he's suffering as much as the people in Gaza as he parrots Hamas propaganda.' Another social media user reminded people that 'ABC considers this part of their news product.' 'English is Javier Bardem's second language, stupid is his first,' added another on X. Leftist YouTube channel The Serfs spoke in favor of Bardem's comments and mocked the liberal ABC show for cutting away. 'Javier Bardem went so hard on the genocide of Palestinians that the View had to cut to commercial break.' None of the reaction nor the cut to break stopped Bardem from making similar statements at the premiere of his new movie, F1, later that night. 'Thousands of children are dying… It's a genocide happening before our eyes. The American support has to stop.' Many on the far left and even mainstream Democrats have accused the Israelis of genocide in their response to the October 7, 2023 Hamas terror attack on an Israeli music festival. Significant protesting has come from American college campuses, who have received smackdowns from the Trump administration for refusing to protect Jewish students and fostering antisemitism.
South Wales Argus
26 minutes ago
- South Wales Argus
G7 leaders say Iran is ‘principal source of instability' in Middle East
The conflict between Israel and Iran has been top of the agenda at the leaders' summit, taking place in Canada. In a statement agreed at the summit, leaders of the world's major economies, including Prime Minister Sir Keir Starmer, said they 'affirm that Israel has a right to defend itself'. The statement, agreed before Donald Trump left the conference early on Monday evening, also includes a call for a 'ceasefire in Gaza'. US President Donald Trump (left) shakes hands with Prime Minister Sir Keir Starmer (Stefan Rousseau/PA) It said: 'We, the leaders of the G7, reiterate our commitment to peace and stability in the Middle East. 'In this context, we affirm that Israel has a right to defend itself. We reiterate our support for the security of Israel. 'We also affirm the importance of the protection of civilians. 'Iran is the principal source of regional instability and terror. 'We have been consistently clear that Iran can never have a nuclear weapon. 'We urge that the resolution of the Iranian crisis leads to a broader de-escalation of hostilities in the Middle East, including a ceasefire in Gaza. 'We will remain vigilant to the implications for international energy markets and stand ready to coordinate, including with like-minded partners, to safeguard market stability.' On Monday, White House press secretary Karoline Leavitt announced on X that Mr Trump would be leaving the summit early, following a dinner with heads of state. President Donald Trump, left, meets with Canada's Prime Minister Mark Carney on the sidelines of the G7 Summit (AP/Mark Schiefelbein) 'Much was accomplished, but because of what's going on in the Middle East, President Trump will be leaving tonight after dinner with Heads of State,' she said. Downing Street declined to comment on Mr Trump's early exit. Iran said at least 224 people had been killed in the country since strikes began on Friday, while Israeli officials said 24 people had been killed and more than 500 injured. The back-and-forth between Israel and Iran has raised concerns about all-out war between the rival nations. Earlier on Monday, Mr Trump and Sir Keir finalised a US-UK deal that will slash trade barriers on goods from both countries, but leaves the future of tariffs on British steel up in the air. The Prime Minister said the move marked a 'very important day' for both sides as the US president announced the agreement was 'done' in a joint appearance on the sidelines of the G7 summit in Canada. The deal will grant British carmakers a reprieve by the end of June as levies drop from 25% to 10%, while the aerospace sector will face no import taxes. But tariffs for the steel industry, which is of key economic importance to the UK, will stand at 25% for now rather than falling to zero as originally agreed. This is less than the US global rate of 50% for steel and aluminium. The Prime Minister described the pact as a 'sign of strength' in the transatlantic relationship, while Mr Trump praised Sir Keir as a 'friend' who had done a 'great job' securing the deal that eluded leaders before him. Following the hastily arranged meeting, the two leaders posed for pictures outside the G7 venue with the signed documents, which the US president dropped before Sir Keir picked them up. Mr Trump also mistakenly referred to the pact as a 'trade agreement with the European Union'. The Department for Business and Trade said the two leaders had pledged to 'make progress towards 0% tariffs on core steel products as agreed'. Asked whether Britain would be shielded from future tariffs, Mr Trump said the UK was protected 'because I like them'. 'The UK is very well protected, you know why? Because I like them. That's their ultimate protection,' he said. The PM told the US President: 'Donald, thank you very much… A really important agreement. And so this is a very good day for both of our countries, a real sign of strength.' The terms of the deal were agreed in May, but neither Washington nor London had yet taken the necessary steps to reduce tariffs.
