RE: Brent crude oil surges21 May 2025 07:41
Brent crude oil futures jumped above $66 per barrel on Wednesday after reports emerged that Israel is planning a strike on Iranian nuclear sites. While it remains unclear if Israel has made a final decision, the news has already sparked concerns about potential supply disruptions in the key oil-producing Middle East region. Fears are also growing that Iran could retaliate by closing the strategically important Strait of Hormuz, a key export route for oil and fuel from major Gulf producers including Saudi Arabia, Kuwait, Iraq, and the UAE. Adding to supply worries is the uncertainty surrounding ceasefire talks between the US and Russia over the Ukraine conflict. However, easing some of these concerns, API data showed that US crude oil inventories rose by 2.5 million barrels last week, following a 4.3 million-barrel increase the week before, defying expectations of a 1.9 million-barrel draw.