WTI Jumps 10% Intraday, Brent Gains More Than 8% as Middle East Tensions Rise

Source

Suehyeon Lee

Summary

International oil prices jumped as rising tensions in the Middle East sent WTI up about 10%% intraday and Brent crude up more than 8%%.
The collapse of peace talks between the US and Iran increased geopolitical risk in the Middle East and revived concerns over disruptions to crude supply.
In particular, the potential closure of the Strait of Hormuz increased uncertainty over global oil shipments, helping drive prices higher.

Forecast Trend Report by Period

Oil prices surged as tensions in the Middle East escalated.

The Kobeissi Letter said West Texas Intermediate crude rose about 10% intraday on June 12, topping $105 a barrel. Brent crude climbed more than 8%, also posting a sharp gain.

The spike followed the collapse of peace talks between the US and Iran. Growing geopolitical risk in the Middle East has revived concerns over disruptions to crude supply.

Prices were also pushed higher by rising uncertainty over global oil shipments as the possibility of a closure of the Strait of Hormuz came into focus.