Oil prices surge, cross $80 after US-Iran conflict engulfs Middle East, Strait of Hormuz

[Yo_Mama_Been_Loggin]

Oil futures surged upward on Sunday evening as traders price in the first open market session after the start of an escalating conflict in the Middle East that is increasingly threatening energy infrastructure.

Futures on Brent crude (BZ=F), the international pricing benchmark, jumped by 13% to trade above $82 per barrel in the first minutes of open trading, while those on US benchmark West Texas Intermediate (CL=F) crude, rose by nearly 10% to cross $70 per barrel.

The price on Brent marks a level not seen since January 2025 as the conflict in Iran has engulfed the entire region, while WTI reached levels not seen since 2025's "12-day war."

Gold (GC=F) also picked up more than 2% as investors ran to the precious metal for its flight-to-safety status, while the US dollar (DX-Y.NYB) appreciated by roughly 0.3%. Shares in Saudi Aramco (2223.SR) rose by more than 3% in the Middle Eastern trading session on the prospect for higher oil prices.

https://finance.yahoo.com/news/oil-prices-surge-cross-80-after-us-iran-conflict-engulfs-middle-east-strait-of-hormuz-233642560.html

So how many on the Trump team invested in oil futures just before we attacked Iran?

[WSHazel]

1. Strange move

The OPEC Plus has agreed to dramatically increase production, so oil should not have moved this much. What do traders know that we don't know?

Trump's crew is definitely front running this.

[Boo1]

4. Well

There's the fact that OPEC still hasn't increase production to the point they promised over a year ago. There's also the issue that the strait is by all objective measures, closed. Oh, and like 75% of the oilfields are within range of Iranian missiles, not to mention proxy groups that could attack them as well. That's not really an IF, but a when.

Besides all of that, this war is already involving essentially every Arab nation in some way. That's not going to happen and oil prices not skyrocket.

[WSHazel]

5. A common misconception about OPEC

Is that it is a strong alliance that works cooperatively. Not actually the case, most of the time. Historically, the members cheat on their quotas, especially when prices are low because oil suppliers need the revenue.

Every member of OPEC hates Iran, and many Sunnis consider the Shiites to be infidels.Iran being cut off from selling oil just means more for everyone else.

[Boo1]

6. Their feelings on Iran

Are immaterial. How will the Saudis increase production when Iranian missiles and drones start knocking down their oil infrastructure?

[Disaffected]

2. WTI (crude oil) futures only up $2.67 now

for April contract (was up about $5 earlier in day).

https://www.cmegroup.com/markets/energy/crude-oil/light-sweet-crude.quotes.html

Dow futures down about 300 now, from down 550 a couple of hours ago.

Bottom line, volatile markets for foreseeable future(s). Best to hang on - no panic selling.

[WSHazel]

7. The market shrugged

The likely outcome is that Trump finds Iran's Delcy Rodriguez, an authoritarian with the existing regime that will cut a deal with Trump personally for a percentage of the oil revenue and then Trump will lift sanctions.

The Iranian regime would be phenomenally stupid to try to slug it out with us. Just pay off Trump and then they can do whatever they want.

[multigraincracker]

3. Can I take my extra hundred bucks and

short bitcoin in the morning?