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Oil prices hold firm at elevated levels, driven by ongoing Middle East tensions.
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Fears of a potential war escalation raise concerns over global supply disruptions, supporting Crude prices.
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Iran’s possible move to block the vital Strait of Hormuz threatens to push Oil prices even higher.
Crude Oil prices retreated from five-month highs near $77.50 during the early Asian session, but selling pressure remained limited above the $73.00 level. As European trading resumed, WTI Crude rebounded above $74.50, supported by persistent fears of supply disruptions due to escalating tensions in the Middle East.
The primary concern for markets is Iran’s threat to block the Strait of Hormuz, a critical chokepoint responsible for nearly 20% of the world’s oil supply. Market sources suggest that such a move could send prices surging to $120–$130 per barrel, should the disruption materialize.
Adding to the instability, Iran has proposed a bill to suspend cooperation with the International Atomic Energy Agency (IAEA) and issued strong warnings of severe retaliation. With geopolitical risks intensifying, global markets remain on edge, and sentiment points to upward pressure on oil prices as the most likely scenario.
Over the weekend, the United States carried out strikes on key Iranian nuclear sites, which President Donald Trump claimed were a strategic success. He framed the mission as a one-off action, though Israeli Prime Minister Benjamin Netanyahu countered that Iran’s nuclear threat remains intact, noting that the underground Fordow facility was reportedly not hit.
Despite intraday fluctuations, the broader trend for WTI Crude remains bullish. Prices have gained nearly 20% since late May, with downside attempts consistently met with support. The next key level in focus is the year-to-date high at $79.60, which could be tested if geopolitical risks continue to escalate.
