Crude oil prices, on Thursday, June 12, 2025, rose by a level last seen in March 2022, days after Russia invaded Ukraine.
Yesterday, concerns that worsening tensions in the Middle East could cause supply disruptions pushed the Brent crude higher by over 10 per cent to $74 per barrel, with the US West Texas Intermediate (WTI) crude also growing by the same figure to $72.97 per barrel.
US President Donald Trump on Thursday said an Israel strike on Iran could very well happen, but added that he would not call it imminent and prefers to avoid conflict.
This came after the board of governors of the International Atomic Energy Agency (IEAE), the United Nations nuclear watchdog, declared Iran in breach of its non-proliferation obligations as it announced counter-measures.
The 35-nation Board of Governors declared Iran in breach of its non-proliferation obligations for the first time in almost 20 years, raising the prospect of reporting it to the UN Security Council.
Meanwhile, US and Iranian officials are scheduled to hold a sixth round of talks on Iran’s escalating uranium enrichment programme in Oman on Sunday.
President Trump said on Wednesday that the American personnel were being moved out of the region because “it could be a dangerous place” and that Iran would not be allowed to develop a nuclear weapon.
He has repeatedly threatened strikes against Iran if the nuclear talks fail to reach an agreement.
He also expressed frustration that oil prices had risen amid supply concerns arising from potential conflict in the Middle East.
The United Kingdom’s maritime agency warned on Wednesday that increased tensions in the Middle East may escalate military activity and impact shipping in critical waterways.
Market analysts noted that if Iran blocks this Strait of Hormuz chokepoint, it could affect up to 20 per cent of global oil flows with JPMorgan warning that oil prices could surge to $120-$130 a barrel if the routes were to be shut, a scenario the bank considered to be severe but a low risk.