Key Highlights
- The rally in crude oil prices came after US President Donald Trump said he’s imposing a 25% tariff on goods from countries “doing business” with Iran.
- One of the biggest producers of the Organization of the Petroleum Exporting Countries, Iran is facing its biggest anti-government demonstrations in years, drawing a warning from Trump of possible military action over lethal violence against protesters.
- According to Rahul Kalantri, VP Commodities, Mehta Equities Ltd, Trump’s warning of potential military action further heightened concerns over Middle East stability and possible disruptions to Iranian oil exports, a key component of global supply.
- “Additional supply risks emerged from Kazakhstan, where production was impacted by adverse weather, maintenance issues, and damage to Russian infrastructure linked to Ukrainian drone attacks, reinforcing bullish sentiment in oil markets," Kalantri said.
- Meanwhile, markets are also grappling with concerns of additional crude supply hitting the market due to Venezuela’s anticipated return to exports.
