HOUSTON: Oil prices climbed over three per cent on Tuesday as the Iran-Israel conflict raged with no end in sight, though major oil and gas infrastructure and flows have so far been spared from substantial impact.
Brent crude futures gained $2.76, or 3.77pc, to $75.99 a barrel by 12:56pm CDT. US West Texas Intermediate crude was up $2.50, or 3.48pc, at $74.26.
While there was no noticeable interruption to oil flows, Iran partially suspended gas production at the South Pars field after an Israeli strike started a fire there on Saturday. Israel also hit the Shahran oil depot.
The continuing exchange of airstrikes between Israel and Iran returned geopolitical risk to oil markets already aware of a tight supply and demand balance, said Phil Flynn, senior analyst with the Price Futures Group.
A collision of two oil tankers near the Strait of Hormuz, where electronic interference has increased during the conflict, highlighted the possibility that the vital waterway for oil shipments would be cut off. Despite the potential for disruption, there were signs oil supplies remain ample amid expectations of lower demand.
Published in Dawn, June 18th, 2025
