Oil markets are entering a new phase of uncertainty after the U.S. entered the war between Iran and Israel, with experts warning of triple-digit prices.
Investors are closely watching for Iran’s reaction following the U.S.′ strikes on its nuclear facilities, with Iran’s foreign minister warning his country reserved “all options” to defend its sovereignty.
Oil futures were up over 2% as of early Asia hours. U.S. WTI crude rose more than 2% to $75.22 per barrel, while global benchmark Brent was up nearly 2% at $78.53 per barrel.
“There is real risk of the market experiencing unprecedented supply disruptions over coming weeks, of a much more severe nature than the oil price shock in 2022 in wake of the Ukraine war,” said MST Marquee’s senior energy analyst Saul Kavonic.
While the market reaction post U.S. strikes has been less aggressive, relative to just over a week ago when Israel launched airstrikes against Iran, industry watchers believe that the latest developments usher in a new era of volatility for the oil markets, especially as they await for potential Iranian countermeasures.
