Crude oil futures traded more than 3 per cent higher on Monday morning after Iran fired missiles at Israel on Sunday.
At 9.14 am on Monday, August Brent oil futures were at $96.26, up 3.41 per cent, and July crude oil futures on WTI (West Texas Intermediate) were at $93.45, up 3.21 per cent. June crude oil futures were trading at ₹8,928 on the Multi Commodity Exchange (MCX) during the initial hour of trading on Monday against the previous close of ₹8,614, up 3.65 per cent. July futures were trading at ₹8,727 against the previous close of ₹8,421, up 3.63 per cent.
Iran said the attacks on Israel were in retaliation to Israeli military operations in Lebanon.
An Axios report said US President Donald Trump asked Israeli Prime Minister Benjamin Netanyahu not to retaliate against Iran’s missile attack and to allow more time for diplomacy.
Citing an unnamed senior US official, the report said the Trump administration did not give a “green light” to the Israeli strike in Beirut. Trump told Netanyahu during the call to hold off because the US is close to doing something good in terms of a deal.
Quoting the US official, Axios said: “We are in a moment in time — why jeopardise a potential deal when you are in the fourth quarter? The president thinks that we have been in this thing for three months — now is the time to end this thing.”
Meanwhile, the Organization of the Petroleum Exporting Countries and allies (commonly known as OPEC+) has approved another increase in July oil production output.
The seven OPEC+ countries — Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman — met virtually on June 7 to review global market conditions and outlook.
In their collective commitment to support oil market stability, the seven participating countries decided to implement a production adjustment of 188,000 barrels per day from July 2026.