Rising Oil Prices Linked to Political Instability in Iran – Global News

Political uncertainty in the Middle East has caused a slight increase in oil prices, with Brent Crude reaching $84.39 a barrel, the highest since May 10. The recent demise of Iranian President Ebrahim Raisi in a helicopter crash near the Azerbaijan border has added to the instability in the region. Raisi, a hardliner and potential successor to Supreme Leader Ayatollah Ali Khamenei, was seen as a key figure in Iran’s political landscape.

In addition to the tragic incident in Iran, Saudi Arabia’s Crown Prince Mohammed bin Salman postponed his trip to Japan due to his father King Salman’s health issues. The 88-year-old king is receiving treatment for lung inflammation, causing concerns about the stability of the Saudi leadership.

Despite these events, energy analyst Saul Kavonic from MST Marquee believes that the market is accustomed to Crown Prince Mohammed bin Salman’s leadership and expects continuity in Saudi strategy. Last week, Brent crude prices rose by 1% and WTI crude saw a 2% increase, driven by positive economic indicators from the U.S. and China.

In Europe, a Russian energy facility was attacked, further adding to the geopolitical tensions. The Slavyansk oil refinery in the Krasnodar region was damaged by a drone attack, highlighting the vulnerability of energy infrastructure in the region.

Overall, the oil market remains stable within a certain range, with experts like Warren Patterson from ING suggesting that clarity on OPEC+ output policy will be needed to see significant changes in prices. OPEC+ is scheduled to meet on June 1 to discuss the current situation and potential adjustments to production levels.