Oil Prices Increase After Reports of Israel Planning an Attack on Iranian Nuclear Sites

Oil prices increased today after US intelligence report came that Israel may strike Iranian nuclear sites. This report first came on CNN. At 5:50 p.m. Indian standard time, 21st May, 2025 Brent crude for June delivery was up by 0.78% at $65.89 per barrel. WTI crude for June delivery was up by 0.79% at $62.56 per barrel. Any strike on Iran will escalate the conflict in Middle East. This in turn will cause a disruption in supply of crude oil.

Iran is a Major Supplier of Crude Oil

Iran is a major supplier of crude oil. Its daily crude oil exports currently stand at 1.5 million barrels of oil per day. Iran in retaliation can also disrupt supply of oil through Strait of Homruz. A number of countries such as Saudi Arabia ship their crude oil through the Strait of Homruz.

Iran and USA are holding talks to stop Iran from further enriching its uranium. Uranium enrichment for increasing the concentration of Uranium -235 isotope is necessary for making a nuclear bomb. After the most recent round of talks, Iran’s supreme leader Ali Khamenei said that US demands are outrageous and he does not see a resolution through the ongoing talks.

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