Iran and Israel continued shelling on Monday. What about oil prices?

The Israeli Air Force on Monday struck military targets in western and central Iran, the IDF said on the X social network. This included shelling and partial damage to a petrochemical plant in Iran, the semi-official Fars news agency reported, citing a source, CNN quoted him as saying.

At the same time, Iranian state broadcaster IRIB reported the launch of a new wave of missiles towards Israel, CNN reported. In addition, the Iranian-backed Yemeni Houthis announced a strike on Israel. According to the IDF, it was intercepted. The Houthis announced "a complete and comprehensive ban on Israeli shipping in the Red Sea" and warned that they would consider any enemy movements as military targets.

Oil prices on this background strengthened growth. Futures for the international benchmark grade Brent with delivery in July rose by 4.8% and traded at $97.65 per barrel. Futures for WTI with delivery in August added 4.5%, rising to $94.6 per barrel.

"The escalation between Israel and Iran has shown again how fragile the cease-fire [in the Middle East] remains," Andy Lipow, president of Lipow Oil Associates, told Bloomberg. - The intensifying fighting raises geopolitical risks: The [Strait of Hormuz] may remain closed longer than expected, and the likelihood of Iran taking additional steps to restrict shipping in the Red Sea is increasing."

The news is supplemented.

This article was AI-translated and verified by a human editor