Oil prices wobbled on Monday as markets reacted to the United States bombing Iranian nuclear facilities over the weekend. Investors are now watching Iran’s next move, especially whether it will block the Strait of Hormuz, a vital route that carries nearly 20% of the world’s oil supply.
At the opening of trading, Brent crude and West Texas Intermediate (WTI) surged over 4%, hitting their highest levels since January. But within hours, they fluctuated and stood at a modest 0.3% gain by midday.
Oil Prices Wobble After US Strikes Iran, Markets on Edge
The biggest fear on the table? Retaliation. “Will Iran choose to choke off the Strait of Hormuz or not? That is the big question,” said Bjarne Schieldrop, chief commodities analyst at SEB bank. While oil prices wobbled after the US strikes on Iran, many experts believe the global oil market hasn’t priced in a full-blown crisis yet.
“Iran’s ability to retaliate has been severely restricted,” said David Morrison, senior market analyst at Trade Nation. Investors think US strikes were limited but effective enough to damage Iran’s nuclear ambitions, without triggering a full war.
Still, the tension is thick. As Iran and Israel continue trading blows, the world is watching closely. According to AJ Bell investment director Russ Mould, “Markets are not yet reacting with panic… they await to see how Tehran responds.”
Oil Prices Wobble After US Strikes Iran, Stocks Also Dip
The market reaction didn’t stop at oil. Wall Street dipped, with the S&P 500 dropping 0.1% and the Nasdaq Composite down 0.2%. In Europe, Paris and Frankfurt recorded steeper losses. Airlines like EasyJet and British Airways-owner IAG suffered due to fears of higher fuel prices and disruptions in Middle East air travel.
In Asia, Tokyo slid while Hong Kong and Shanghai closed higher. Analysts say oil prices are wobbling, not crashing, because satellite images show crude still flowing through the Strait of Hormuz. Ipek Ozkardeskaya of Swissquote Bank said Iran might avoid aggressive retaliation to protect its own oil infrastructure and avoid upsetting China, its biggest buyer.
But she warned: “If things get uglier,” oil could break $100 per barrel. On Monday, Brent was trading above $77, while WTI hovered around $74.
Oil Prices Wobble After US Strikes Iran
Whether this is a brief scare or the start of something bigger, For now, the world waits for Tehran’s next move. If Iran shuts the Strait of Hormuz or targets global energy infrastructure, the calm won’t last.
