Iran's parliamentary speaker warned that the ongoing conflict could disrupt the country's ability to produce and sell oil as energy markets react to escalating strikes in the region.
Mohammad Bagher Ghalibaf said recent strikes by the United States and Israel were harming regional and global interests, as crude prices rose and concerns grew over disruptions to oil supplies. The warning comes as attacks linked to the conflict in the Middle East continue to affect energy markets and raise concerns about the movement of oil through key shipping routes.
“If the war continues like this, there'll be neither a way to sell oil nor the capacity to produce it,” Ghalibaf said.
“Trump said oil prices wouldn't go too high, but now that they've risen, he says they'll correct soon! They're not only burning America's interests but also the interests of the region's countries and the world at the feet of Netanyahu's delusions,” he added.
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Oil prices have risen in recent days amid concerns over supply disruptions linked to the conflict. United States crude recorded its largest weekly gain in futures trading history on Friday.
West Texas Intermediate futures rose 12.21%, or $9.89, to settle at $90.90 per barrel. Brent crude increased 8.52%, or $7.28, to close at $92.69 per barrel. For the week, WTI crude rose 35.63%, the largest weekly gain since the futures contract began trading in 1983. Brent crude gained about 28%, its largest weekly rise since April 2020.
The Israeli military struck several Iranian fuel sites late on Saturday, sending fire and smoke into the air and triggering explosions in Tehran and the nearby city of Karaj. Fire and smoke rose over Tehran after joint United States-Israeli air strikes hit fuel depots in the Iranian capital.
Iran's oil distribution company said four employees were killed in the strikes. A haze remained over the city on Sunday and the smell of burning oil lingered in the air.
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The strikes triggered large fires after hitting four oil storage facilities and an oil transfer and production centre in Tehran and neighbouring Alborz province, Al Jazeera reported quoting Fars news agency. Iranian state media described the incident as an “attack from the US and the Zionist regime”.
Joint United States-Israeli attacks on Iran have continued for a ninth day. Officials said more than 1,300 people have been killed in Iran and about 300 in Lebanon, while about a dozen people have died in Israel.
United States President Donald Trump demanded unconditional surrender from Iran on Friday, raising concerns that the conflict could continue and disrupt oil and gas markets. Shipping through the Strait of Hormuz, a key route for global energy supplies, has slowed amid the escalation.
Qatar's energy minister Saad al-Kaabi told the Financial Times that crude prices could reach $150 per barrel in the coming weeks if oil tankers cannot pass through the strait.
“This could bring down the economies of the world,” Kaabi said.
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