Rep. Jay Obernolte from California spoke with Maria during morning news to discuss the recent Israeli attacks on Iranian military targets and how these relate to prior warnings from Donald Trump.
On Friday, oil prices surged following Israeli strikes on Iran’s nuclear installations. The U.S. West Texas intermediate price climbed about 6%, reaching $72 per barrel. This uptick in prices could significantly impact Iran’s energy supply and overall regional stability. Meanwhile, Brent crude, a global benchmark, saw a 10% increase, hitting approximately $73.50 per barrel by noon.
According to Andy Lipow from Lipow Oil Associates, there are rising concerns that Iran might retaliate against either Israeli or American interests, leading to heightened military tensions and disruptions in oil supply.
Interestingly, Lipow noted that Iran might perceive the recent increase in OPEC+ oil production—much higher than anticipated—as a strategy to counterbalance potential reductions in its own oil exports due to escalating hostilities. He suggested that losses to Iran’s oil market could escalate to $7.50 per barrel, but if shipping through the Strait of Hormuz were impacted, prices could spike to $100.
Other industry experts like Phil Flynn, a senior analyst at Price Futures Group, expressed skepticism about any sudden price spikes, pointing out that there have been no indications of damage from previous Iranian threats to close the Strait of Hormuz.
Flynn stated, “It’s likely evident that they don’t possess an army capable of executing those threats—especially after the recent losses of key leaders from Iran’s revolutionary guards.” He believes prices often “overreact initially” before stabilizing. He remarked that observers should monitor how this situation unfolds in the coming days, as it may lead to more balanced oil pricing overall.
