The International Energy Agency (IEA) expressed concerns on Monday that escalating tensions in the Middle East, exacerbated by Iran’s recent airstrikes on Israeli military installations, could increase volatility in the oil markets and underscore the importance of energy security.
According to a press release from the agency, the global oil markets were already tight before these attacks, and the rising geopolitical tensions in the Middle East are now putting a spotlight on supply security, as detailed in the latest version of the agency’s monthly oil market report, reported by the Arab World News Agency.
The agency noted that Brent crude had earlier this month surpassed $90 per barrel, reaching its highest level since October 2023 amidst escalating tensions between Israel and Iran.
However, oil prices dipped in the Asian markets earlier today, Monday, as market participants scaled back risk premiums following the Iranian attack on Israel late Saturday, which the Israeli government reported resulted in only limited damage.
By 07:19 GMT, Brent crude futures for June delivery had fallen 76 cents to $89.69 per barrel, and West Texas Intermediate crude futures for May delivery were down 82 cents at $84.84 per barrel.
The attack, involving over 300 missiles and drones, marked the first such direct assault on Israel from another country in over 30 years.
It has raised fears of a broader regional conflict that could affect the movement of oil across the Middle East.
