Oil prices climb as US strikes Iran's nuclear facilities

Crude oil prices rose after the United States launched strikes on Iran's nuclear facilities on Sunday, June 22, marking an escalation in the ongoing Middle East conflict. The attack ended days of speculation over whether the Donald Trump-led administration would step in to support Israel in the ongoing 10-day conflict.

Last checked, global benchmark Brent crude futures rose 0.40 per cent or 31 cents to $77.32 a barrel, while US West Texas Intermediate (WTI) crude gained 0.73 per cent or 54 cents to $74.04 per barrel.

This past week, the White House had indicated that US President Donald Trump was weighing a decision on Iran strikes. However, Sunday's targeted action has cast doubt on the likelihood of talks in the near term.

The US President stated that no further military action is planned "for now". Despite the assurance, markets remain wary of a broader escalation, particularly given Iran's strategic importance in global oil supply.

Iran contributes nearly one-third of the total output by OPEC+ and stands as the group's third-largest producer. Any disruption in its supply could significantly impact global energy markets, especially if Tehran chooses to retaliate or threatens to close the Strait of Hormuz -- a vital shipping lane through which nearly 20 per cent of the world's oil passes.

Crude oil continues to witness heightened volatility, with prices swinging sharply in response to developments and official statements surrounding the Israel-Iran conflict, noted Rahul Kalantri, VP Commodities at Mehta Equities.

"Markets remain jittery as risks of supply disruptions from Iran and broader conflict escalation loom large. Geopolitical tensions and supply fears continue to support oil prices despite temporary pullbacks," he added.

Equity investors are expected to closely monitor oil price trends, which have been rising for the past three weeks. Attention will also remain on potential retaliatory moves from Iran that could further unsettle markets in the near term.