From Investing.com: 2025-06-20 01:04:00

Oil prices surged to near four-and-a-half-month highs due to escalating Middle East tensions and President Trump’s ambiguous statements about potential US military involvement in the Israel-Iran conflict. WTI crude rose 1.69% to $76.41 per barrel, while Brent crude climbed 1.29% to $77.69, reflecting concerns over supply disruptions in the oil-producing region.

Goldman Sachs analysts predict that geopolitical tensions could add $10 per barrel to Brent crude prices, potentially exceeding $90 if Iranian supply is disrupted. Ongoing attacks on oil vessels highlight the vulnerability of Middle Eastern oil exports, impacting global energy security.

President Trump’s vague comments on potential US military action have increased market uncertainty. The prospect of American intervention could lead to broader regional conflict and severe supply disruptions, contributing to market volatility as traders assess the situation.

Barclays warns of oil prices surpassing $100 per barrel if Middle East hostilities escalate significantly. Even a disruption of half of Iran’s oil exports could push Brent crude to $85 per barrel, considering Iran’s significant daily exports, mainly destined for China.

The oil market has responded decisively to the geopolitical uncertainty, with energy commodities leading broader commodity gains. Gasoline and natural gas prices also rose, reflecting strength in the energy sector amid ongoing tensions and supply disruption risks.

Despite recent gains, oil prices slightly retreated as traders await clearer signals on US intentions and potential military action scope. Market participants remain sensitive to developments that could escalate or de-escalate the crisis, adopting wait-and-see approaches while preparing for potential supply shocks.



Read more at Investing.com: Middle East Tensions Push Oil to 4-Month Highs Amid Supply Shock Risks