Brent crude futures rose by $1.12, or 1.5%, to $75.35 a barrel in early Asian trade, while U.S. West Texas Intermediate (WTI) gained $1.10, or 1.5%, to $74.08. Both benchmarks had spiked over $4 earlier in the session. On Friday, crude settled nearly 7% higher, with intraday gains of more than 13%, marking their strongest rally since January.
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The renewed exchange of missile strikes over the weekend led to civilian casualties and stoked concerns that the hostilities could escalate further. Both Israeli and Iranian forces have warned civilians to take precautions, raising fears of an extended regional conflict.Market watchers are particularly concerned about potential disruptions to the Strait of Hormuz, a strategic chokepoint through which about 18 to 19 million barrels per day—nearly a fifth of global oil consumption—are shipped.
Iran, a key OPEC member, produces around 3.3 million barrels of oil per day and exports over 2 million bpd of crude and fuel. Any impact on these exports could have significant implications for global supply chains.
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Amid rising tensions, U.S. President Donald Trump expressed hope for a ceasefire but noted that “sometimes countries have to fight it out first.” While reaffirming U.S. support for Israel, he declined to confirm whether he had urged a pause in the strikes.German Chancellor Friedrich Merz also voiced concern, stating that the Group of Seven (G7) summit in Canada could provide an opportunity to explore diplomatic solutions and prevent further escalation.
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However, hopes for an immediate truce remain slim. According to sources cited by Reuters, Iran has told mediators from Qatar and Oman that it will not consider a ceasefire while under Israeli attack.
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