Oil Markets Brace Ahead of Iran's Next Move
Traders are watching events in the Middle East unfold, bracing for a possible retaliation from Tehran to U.S. President Donald Trump’s decision to launch strikes on Iran’s nuclear energy facilities the past weekend. Observers warn that in a worst-case-scenario, Iran could choose to block the Strait of Hormuz, a key maritime choke point for the transportation of oil. If this happens, analysts warn that Brent crude could spike to $100 per barrel. So far, however, movement of oil tankers in the Strait of Hormuz has remained largely unchanged, according to The Guardian, despite reports of “persistently higher levels of electronic interference”. Meanwhile oil prices decreased by 1 percent on Monday, after having surged earlier that day to a five-month high.
The following chart shows how oil prices had been trending downward through to last month before ticking upward in June. In May, oil prices hit their lowest points across OPEC, UK Brent and WTI crude since spring of 2021. Last month, the average daily closing price for selected OPEC crude oils was $69.78 per barrel, while for UK Brent it was $70.43 per barrel and for WTI crude $67.53 per barrel. As of June 18, the average daily closing prices for the month had risen to $69.78 (OPEC), $70.43 (UK Brent) and $67.53 (WTI).