Crude Oil Prices Rise Amid Geopolitical Uncertainty After Iranian President’s Death — TradingView News

Crude oil prices rose on Monday due to political instability in major oil-producing countries.

It follows the tragic death of Iranian President Ebrahim Raisi in a helicopter crash and the cancellation of a planned trip to Japan by Saudi Arabia’s Crown Prince Mohammed bin Salman over concerns about the health of his father, King Salman.

Brent and WTI crude oil prices are rising

Brent crude was up 41 cents, or 0.5 percent, at $84.39 a barrel by 0632 GMT.

Earlier, it touched $84.43, marking its highest point since May 10. Similarly, U.S. West Texas Intermediate (WTI) crude for June rose 23 cents to $80.29 a barrel after hitting a peak of $80.35, the highest since May 1.

The more active July contract also rose 31 cents, or 0.4 percent, to $79.89.

Iranian leadership in crisis

The unexpected death of Iranian President Ebrahim Raisi has introduced significant uncertainty into oil markets.

Raisi, a party hardliner who was seen as a likely successor to Supreme Leader Ayatollah Ali Khamenei, died in a helicopter crash near the border with Azerbaijan.

This incident raises questions about the future of Iran’s political landscape and its impact on global oil supplies.

Saudi leadership health concerns

Exacerbating geopolitical tension, Saudi Arabia’s Crown Prince Mohammed bin Salman has postponed his trip to Japan due to the health problems of his father, King Salman.

According to Japanese Chief Cabinet Secretary Yoshimasa Hayashi, King Salman, who is 88, is to undergo treatment for lung inflammation.

The state news agency confirmed the news on Sunday, adding another layer of uncertainty to oil markets.

Market Analysts’ Insights

Analysts, including IG Markets’ Tony Sycamore, noted that these developments could push oil prices even higher.

Sycamore pointed out that the uncertainty surrounding King Salman’s health adds to the volatility in energy markets following Raisi’s death.

He predicted that WTI prices could go further back towards $83.50, especially after breaking above the 200-day moving average of $80.02.

Data driven market analysis

The correlation between geopolitical events and the price of oil is obvious. Historical data shows that significant political disruptions in key oil-producing countries tend to trigger price fluctuations.

For example, during previous periods of instability in the Middle East, Brent and WTI crude oil prices experienced similar upward movements.

This trend underscores the sensitivity of oil markets to geopolitical changes.

Impact on global oil supply

Iran and Saudi Arabia are major players in the world oil market, collectively influencing global supply dynamics. Iran’s political instability and potential leadership changes could disrupt its oil production and export strategies.

Meanwhile, any health-related transition in Saudi Arabia’s leadership could affect the country’s oil policies, particularly as it navigates the global energy transition and market stability.

Implications for investors and consumers

Rising oil prices can have far-reaching implications for both investors and consumers.

For investors, the current situation presents potential opportunities in oil futures and related markets. However, it also involves risks associated with increased volatility.

For consumers, rising oil prices could translate into higher fuel costs, impacting transportation and commodity prices, ultimately affecting global economic stability.