Oil Prices Surge Above $125 as Tensions Rise Between Washington and Tehran

Strong Surge in Oil Prices Due to War Fears in the Middle East

Oil prices have sharply risen, jumping above $125 per barrel, following reports that the United States is considering military action against Iran to break the deadlock in nuclear negotiations.

This has heightened market fears of potential disruptions in oil supplies coming from the Middle East.

Developments also indicate that the "OPEC+" alliance may be heading towards an agreement to slightly increase production by about 188,000 barrels per day.

Brent Crude Hits Highest Level Since 2022 with Consecutive Gains

Brent crude futures for June rose by $8.17 or 6.92% to reach $126.20 per barrel by 04:17 GMT, the highest level since March 2022.

This increase follows a gain of 6.1% in the previous session, as the contract continues to rise for the ninth consecutive day, with the June contract nearing expiration on Thursday.

The more actively traded July contract recorded $113.10 per barrel, up $2.66 or 2.4%, after a 5.8% rise in the previous session.

West Texas Intermediate Continues to Rise Towards Consecutive Monthly Gains

West Texas Intermediate (WTI) crude futures for June rose by $3.20 or 2.99% to reach $110.08 per barrel, following a 7% jump in the previous session.

Thus, both Brent and West Texas are on track for gains for the fourth consecutive month amid ongoing geopolitical tensions.

Reports of U.S. Military Plan Against Iran Led by Trump

A report published by "Axios" stated that U.S. President Donald Trump will receive a briefing on potential plans for a series of military strikes against Iran, aimed at pushing it back to the negotiating table regarding its nuclear program.

A White House official also mentioned that Trump discussed with oil companies the impact of any potential blockade of Iranian ports if it lasts for several months, which has increased market concerns about supply stability.

Fears of Supply Disruption and Possible Closure of the Strait of Hormuz

Market fears have increased regarding potential oil supply disruptions if the conflict in the region escalates, especially with discussions about scenarios that include the closure of the Strait of Hormuz.

Market analyst at "IG" Tony Sycamore stated that "the chances of reaching a near-term resolution to the conflict or reopening the strait remain low," reflecting continued pressure on prices.

These developments come amid an extended conflict that analysts say has caused one of the largest disruptions to global energy supplies.

OPEC+ Considering a Slight Increase in Production

On the supply side, sources indicated that the "OPEC+" alliance, which includes OPEC member countries and their allies, is likely to agree on Sunday to increase oil production by about 188,000 barrels per day.

This potential move comes in an attempt to balance the markets amid sharp price fluctuations and geopolitical tensions.

Conclusion: Oil Market Under Geopolitical Pressure

Current developments show that oil prices are moving directly with the political and military escalation in the Middle East, with markets continuing to watch for any U.S. decisions or actions from Iran or "OPEC+", amid fluctuations that may keep prices at elevated levels in the near term.