The US and Israel carried out strikes on Iran over the weekend, called “Epic Fury”, reportedly killing Iran’s Supreme Leader and effectively closing the Strait of Hormuz.
Energy prices jumped immediately on supply concerns. While Tehran insists the Strait remains open, some ships have begun rerouting away from the passage.
WTI crude rose nearly 6% on Monday, pushing past US$71 a barrel, its highest level since June last year. Brent gained more than 6.5%, approaching US$78.
European and UK natural gas was even more volatile. Futures surged as much as 50% for both, after reports QatarEnergy suspended LNG production at Ras Laffan. UK natural gas looks particularly exposed, with gas storage below 30% at the end of February.
Enrgy markets are likely to stay volatile while traders react to every shipping update, signs of escalation, or further supply constraints.
For the exact date and time of major economic events, import the BlackBull Markets Economic Calendar to receive alerts directly in your email inbox.
Trading involves risk and may not be suitable for all investors. The information provided in this article is for educational purposes only and does not constitute financial advice. Always conduct thorough research and seek professional advice before making any investment decisions.
