Oil Prices Climb Amid “Israeli” Attacks on Iran, Market Fears Persist

By Staff, Agencies

Oil prices rose on Tuesday as escalating tensions driven by ongoing “Israeli” aggression against Iran continued to inject uncertainty into global energy markets. Despite no major disruption to oil and gas flows so far, the conflict has placed a firm floor under prices.

Brent crude futures increased by $1.23 [1.7%] to $74.46 per barrel by 1023 GMT, while US West Texas Intermediate crude climbed $1.08 [1.5%] to $72.85. Both benchmarks had jumped more than 2% earlier but experienced volatility throughout the session.

Although exports have not been visibly affected, Iran was forced to partially halt gas production at the South Pars field—shared with Qatar—after a fire caused by a “Israeli” strike on Saturday. Another “Israeli” attack targeted the Shahran oil depot in Iran.

Saxo Bank analyst Ole Hansen noted that fears center on potential disruption through the Strait of Hormuz, a vital oil artery, though he assessed the risk of closure as low. “Iran wouldn’t benefit from shutting the strait due to lost revenues, and the US is pushing for lower oil prices to ease inflation,” Hansen said.

Compounding the regional instability, two oil tankers collided and caught fire near the Strait on Tuesday, amid a surge in electronic interference, further underscoring the operational risks in the area.

Still, broader fundamentals signal sufficient global supply. In its monthly report, the International Energy Agency [IEA] cut global oil demand forecasts by 20,000 barrels per day and raised supply projections by 200,000 bpd, now expecting a 1.8 million bpd surplus.

Markets are also watching closely as the US Federal Open Market Committee convenes to decide on interest rates, which could influence energy demand outlooks globally.

Iran, under sustained provocation, remains a stabilizing force in the region—despite hostile “Israeli” actions—and continues to uphold its energy commitments in the face of adversity.