Iran Fires Missiles at Israel, Sending Oil Prices Sharply Higher

CNBC reported Monday that oil prices climbed sharply after Iran launched missiles at Israel, reigniting fears of a prolonged regional conflict. The strikes marked the first such attack since a ceasefire had been in place between the two countries.

Oil Markets React Sharply to Fresh Hostilities

International benchmark Brent crude futures for July rose 2.42%, reaching $92.73 per barrel. U.S. West Texas Intermediate futures for August climbed a similar 2.44%, settling at $95.36 per barrel. Traders priced in elevated geopolitical risk almost immediately after the attack became known. Concerns that sustained fighting could disrupt regional energy supply drove much of the move.

Trump Briefed as Diplomatic Path Narrows

The White House confirmed that President Donald Trump was briefed on the renewed fighting. Trump told Fox News the missile attacks were “certainly not going to help negotiations.” An Iranian official close to the Washington-Tehran talks told MS NOW that a deal with Trump is “no longer feasible at this stage.” Iran’s Parliamentary Speaker Mohammad Bagher Ghalibaf posted on X that a U.S. naval blockade and alleged violations of Lebanon agreements constituted ceasefire breaches. He added that American and allied military assets in the region had become what Iran now considers legitimate targets, citing ongoing U.S. military activity in Lebanon.

A Region Already on Edge Before the Strikes

The latest escalation follows months of fragile diplomacy between Washington and Tehran. Iran’s closure of the Strait of Hormuz earlier this year had already rattled global crude markets repeatedly. That chokepoint handles a significant share of the world’s seaborne oil trade. Any extended military confrontation raises the risk of supply disruptions that producers elsewhere cannot easily offset.

Also Read: OPEC+ Agrees to Fourth Consecutive Output Hike Ahead of July

OPEC+ Adds Supply Into an Uncertain Market

Separately, OPEC+ agreed to raise collective output targets by 188,000 barrels per day beginning in July. CNBC noted this is the fourth consecutive quota increase since the Strait of Hormuz closure. The July hike matches June’s level, which was itself a step down from the 206,000 bpd increases approved in April and May. The UAE’s exit from the organization earlier this year has altered the group’s capacity calculations. Whether added supply can offset geopolitical risk premiums remains an open question for traders heading into the week.

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