Crude oil prices climbed sharply today after reports surfaced that Israel may be preparing to strike Iranian nuclear facilities.
Brent crude rose to $66.37 per barrel, while West Texas Intermediate (WTI) traded at $62.56. The surge followed a CNN report on Tuesday night citing new U.S. intelligence that suggests the Israeli government is considering military action against Iran’s nuclear sites.
According to CNN, such a move would mark a significant departure from President Donald Trump’s diplomatic approach, as Washington and Tehran are currently in talks over a new nuclear agreement. Both sides have shown interest in reaching a deal.
Analysts warn that any Israeli strike could derail these negotiations and ignite wider conflict in the Middle East. This risk has heightened concerns about disruptions to oil supply, pushing up prices despite otherwise bearish market signals.
The American Petroleum Institute reported a 2.5 million-barrel increase in U.S. crude inventories this week. Additionally, Kazakhstan exceeded its OPEC+ production quota again in May, raising output by 2% despite Saudi pressure to comply with the group’s limits.
Despite these indicators of a well-supplied market, geopolitical tensions are taking precedence.
Within the U.S. government, officials appear divided over how likely it is that Israel will follow through with an attack. CNN’s report noted that the decision may depend on whether President Trump finalizes a deal with Iran—and what that deal includes.
An unnamed official told CNN, “The chance of an Israeli strike on an Iranian nuclear facility has gone up significantly in recent months.” The official added that if a U.S.-Iran deal fails to fully eliminate Iran’s uranium stockpile, a strike becomes even more probable.
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