Oil Prices Surge as Iran Escalates Tensions with Missile Attacks
Oil Price Today (June 3): Crude oil nears $100 again as Iran launches attack in fresh escalation. What are experts saying?
Image: The Economic Times
Oil prices rose over 1% on June 3, nearing $100 per barrel, following Iran's missile attacks on Kuwait and Bahrain. The U.S. military responded with strikes on Iran. Ongoing negotiations between Tehran and Washington remain uncertain, impacting global oil supply dynamics.
- 01Brent crude futures increased by 1.09% to $97.05 per barrel, while U.S. West Texas Intermediate (WTI) rose 1.08% to $94.77.
- 02Iran launched ballistic missiles targeting Kuwait and Bahrain, prompting U.S. military strikes on Qeshm Island.
- 03Negotiations between the U.S. and Iran are stalled, with mixed signals from both sides regarding a potential ceasefire.
- 04Saudi Aramco's CEO warned that disruptions in the Strait of Hormuz could delay oil market stability until 2027.
- 05Morgan Stanley cautioned that prolonged closures of the Strait of Hormuz could tighten global oil supplies.
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On June 3, oil prices surged by over 1% amid escalating tensions in the Middle East, particularly following Iran's missile strikes aimed at Kuwait and Bahrain. Brent crude futures rose by $1.05 to $97.05 per barrel, while U.S. West Texas Intermediate (WTI) increased by $1.01 to $94.77. The U.S. military responded to these missile launches with strikes on Iran's Qeshm Island. Diplomatic efforts between Tehran and Washington to ease hostilities have shown little progress, with Iranian media reporting a lack of communication with the U.S. Meanwhile, Saudi Aramco's CEO warned that instability in the Strait of Hormuz could hinder global oil market recovery until 2027, affecting nearly 100 million barrels of oil supply weekly. Analysts from Morgan Stanley noted that the oil market faces a critical period, as disruptions in this strategic waterway could significantly tighten global oil supplies if negotiations do not yield results soon.
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The escalating tensions and potential disruptions in oil supply could lead to increased fuel prices globally, affecting consumers and industries reliant on oil.
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