Oil prices are expected to surge by $3 to $5 per barrel following US airstrikes on Iran’s nuclear facilities over the weekend.
President Donald Trump confirmed the attacks, declaring Iran’s key nuclear sites “obliterated,” in a coordinated move with Israel. Tehran, OPEC’s third-largest oil producer, has vowed to respond.
Analysts warn that any major retaliation disrupting supply could send prices soaring further. Brent crude, which closed at $77.01 on Friday, and WTI at $73.84, could open sharply higher.
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Rystad Energy’s Jorge Leon said markets are now pricing in a heightened geopolitical risk premium.
Though Brent has risen 11% since the conflict flared on 13 June, supply remains stable thanks to spare capacity across other OPEC members. UBS’s Giovanni Staunovo notes risk premiums tend to ease unless supply disruptions materialise.
Market volatility is expected through the week.
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