Oil prices are expected to climb when trading resumes on Sunday over concerns that Iran could target shipping in the Strait of Hormuz in retaliation for US attacks on its nuclear facilities, said analysts.
S&P Global Community Insights said the bombing of the three Iranian nuclear facilities was “bullish” for near term oil prices, especially when the market opens.
“The key question is what comes next. Will Iran attack US interests directly or through allied militias? Will Iranian crude exports be suspended? Will Iran attack shipping in the Strait of Hormuz?” said the provider of energy research.
S&P Global said an initial oil price surge would likely ease on Monday as long as the Strait of Hormuz remains open.
About 21mn barrels of oil from Iran, Iraq, Kuwait, Saudi Arabia and the United Arab Emirates pass daily through the narrow waterway separating the Islamic republic from the Gulf states, representing about a third of the world’s seaborne oil supplies.
In the days leading up to the US attacks, Iran had warned it could close the strait in the event of an US attack.
