Wed 11/June/2025 – 11:49 PM
Rise Brent crude price August delivery by 4.3% to settle at $ 69.77 a barrel, and contracts rose West Texas raw The mediator is 4.9% to close over $ 68 a barrel, recording the largest daily gains since October.
According to Bloomberg, the rise comes in conjunction with the reduction of the Donald Trump administration, the number of its embassy employees in Iraq, and its allowance to the families of the military to leave the area in response to the ongoing security concerns, and the British navy issued a rare warning to the sailors that the escalation of tensions in the Middle East may affect the charging movement.
These developments exacerbated speculation about the possibility of disruptions in supplies in the region, after the French Press Agency reported that Iran had threatened to target American military bases in the event of conflict.
Rebecca Babin, the chief energy trader of the CIBC Group, said that the Iranian discourse has become significantly more hostile, and these threats are supported by concrete developments on the ground.
She added: Although geopolitical ascension waves are usually an opportunity for sale, this situation is complicated by the possibility of an Israeli military move if negotiations collapsed, which makes traders more cautious about selling during the current wave of rise.
Tensions with Iran enhance oil gains.
In a related context, US President Donald Trump told the New York Post that he was less confident in the possibility of persuading Tehran to agree to close its nuclear program.
It was also published on social media that a commercial agreement with China has become accomplished, but it is still mortgaged with the approval of Chinese President Xi Jinping.
Oil prices had been pressured earlier due to expectations that the trade war between the two largest economies in the world may harm demand, as well as any agreement with Iran that may restore the barrels subject to sanctions to the market, exacerbating the increase in supplies from the OPEC+alliance.
However, the prices witnessed a recovery in the recent sessions, supported by the decline in commercial tensions, and expectations to improve demand during the summer.
Underestimation hangs over the market
A monthly report issued by the US Energy Information Administration highlighted the state of uncertainty prevailing in the oil market.
While the agency expects the supply to exceed the demand this year by a difference of 800 thousand barrels per day, which is the highest level since the agency began to publish expectations for 2025, it does not expect US crude production to exceed last month before the end of next year, indicating that low prices curb some supplies.
Indicators also appeared on the tightening of the market along the futures curve, and earlier this week, the price gap between February and March decades moved to West Texas Intermediate crude to the state of Bakoridchen for the first time since April, and the gap increased for decades for several months later during the day, indicating that fears of the exhibit being began to decline.
