Oil Prices Soar Amid Political Uncertainty Following Iran President’s Death

On Monday, oil prices soared amid political uncertainty in key producing countries following the death of Iran’s president in a helicopter crash and the cancellation of a trip to Japan by Saudi Arabia’s crown prince due to the king’s health.

Brent climbed 41 cents, or 0.5 percent, to $84.39 a barrel by 0632 GMT, after reaching $84.43 earlier, its highest since May 10.

US West Texas Intermediate (WTI) crude for June inched up 23 cents to $80.29 a barrel, after hitting $80.35 earlier, the highest since May 1. The June contract expires on Tuesday and the more active July contract closed at $79.89, up 31 cents, or 0.4 percent.

Iranian President Ebrahim Raisi, a hardliner long regarded as a prospective successor to Supreme Leader Ayatollah Ali Khamenei, died on Sunday in a helicopter crash in mountainous terrain near the Azerbaijan border.

Separately, Japan’s Chief Cabinet Secretary Yoshimasa Hayashi announced that Saudi Arabian Crown Prince Mohammed bin Salman’s visit to Japan, scheduled to begin on Monday, has been postponed due to a health issue with his father King Salman.

Brent closed the previous week up nearly 1 percent, its first weekly rise in three weeks, while WTI jumped 2 percent on improving economic data from the United States and China, the world’s largest oil buyers.

Despite the region’s turmoil, oil prices changed barely marginally.

The Organization of the Petroleum Exporting nations and its allies, known as OPEC+, are scheduled to meet on June 1.

In the United States, Washington took advantage of the recent decline in oil prices, announcing late last week that it had bought 3.3 million barrels of oil at $79.38 a barrel to help refill its Strategic Petroleum Reserve following a large sell from the stockpile in 2022.

Also read: Iran’s First Vice President To Replace Late President Ebrahim Raisi