24/06/2025

BIZ & FINANCE TUESDAY | JUNE 24, 2025

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Oil prices surge to five-month high The rise in prices came after US President Donald Trump said he had “obliterated” Iran’s main nuclear sites in strikes over the weekend, joining an Israeli assault in an escalation of conflict in the Middle East as Tehran vowed to defend itself. targets for its armed forces and called President Donald Trump a “gambler” for joining Israel’s military campaign against the Islamic republic. o US attack on Iranian nuclear sites increases risk of supply disruption

adding global incentives to try and prevent a sustained and very large disruption. Brent has risen 13% since the conflict began on June 13, while WTI has gained around 10%. Given the Strait of Hormuz is indispensable for Iran’s own oil exports, which are a vital source of its national revenues, a sustained closure would inflict severe economic damage on Iran itself, making it a double-edged sword, Sachdeva added. Meanwhile, Japan yesterday called for de-escalation of the conflict in Iran, while a South Korean vice-industry minister voiced concern over the potential impact of the strikes on the country’s trade. Russian President Vladimir Putin will meet Iranian Foreign Minister Abbas Araqchi in Moscow this week, Russian Interfax agency said, citing Kremlin aide Yuri Ushakov. – Reuters wait-and-see mode NEW YORK: Gold prices edged lower yesterday as investors favoured the dollar following the US attack on key Iranian nuclear sites over the weekend, with markets closely watching for Iran’s response. Spot gold was down 0.4% at US$3,354.03 an ounce, as of 0532 GMT (1.32pm in Malaysia). US gold futures fell 0.5% to US$3,369.10. “The US strikes on Iranian nuclear facilities resulted in the dollar receiving safe haven buying flows in the currency market,” KCM Trade chief market analyst Tim Waterer said. “This USD uptick had pegged gold back and caused an uncharacteristically subdued performance from the precious metal despite risks stemming from the conflict.” The dollar rose 0.3% against its rivals, making gold more expensive for other currency holders. US President Donald Trump on Sunday raised the question of a regime change in Iran following American strikes against key military sites over the weekend, as senior officials in his administration warned Tehran against retaliation. Iran vowed to defend itself a day after the US dropped 30,000-pound bunker-buster bombs onto the mountain above Iran’s Fordow nuclear site. Meanwhile, Iran and Israel continued to trade volleys of missile attacks. An Israeli military spokesperson said Israeli fighter jets had struck military targets in western Iran. The Federal Reserve’s latest monetary policy report to Congress, released on Friday, said US inflation remained somewhat elevated and the labour market was solid. On the technical front, spot gold may retest support at US$3,348 per ounce, a break below could open the way toward US$3,324, according to Reuters technical analyst Wang Tao. Elsewhere, spot silver rose 0.1% to US$36.02 per ounce, platinum was steady at US$1,264.96, while palladium gained 0.6% to US$1,050.07. – Reuters Gold slips as dollar firms, markets in

“The risks of damage to oil infrastructure ... have multiplied,” said Sparta Commodities senior analyst June Goh. Although there are alternative pipeline routes out of the region, there will still be crude volume that cannot be fully exported out if the Strait of Hormuz becomes inaccessible. Shippers will increasingly stay out of the region, she added. Goldman Sachs said in a Sunday report that Brent could briefly peak at US$110 per barrel if oil flows through the critical waterway were halved for a month, and remain down by 10% for the following 11 months. The bank still assumed no significant disruption to oil and natural gas supply,

Iran is Opec’s third-largest crude producer. Market participants expect further price gains amid mounting fears that an Iranian retaliation may include a closure of the Strait of Hormuz, through which roughly a fifth of global crude supply flows. “The current geopolitical escalation provides the fundamental catalyst for (Brent) prices to traverse higher and potentially spiral towards US$100, with US$120 per barrel appearing increasingly plausible,” said Sugandha Sachdeva, founder of New Delhi-based research firm SS WealthStreet. Iran said yesterday that the US attack on its nuclear sites expanded the range of legitimate

NEW DELHI: Oil prices jumped yesterday to their highest since January as the United States’ weekend move to join Israel in attacking Iran’s nuclear facilities stoked supply concerns. Brent crude futures were up 72 cents or 0.93% to US$77.73 a barrel as of 0806 GMT (4.06pm in Malaysia). US West Texas Intermediate crude advanced 71 cents or 0.96% to US$74.55. Both contracts jumped by more than 3% earlier in the session to US$81.40 and US$78.40, respectively, touching five-month highs before giving up some gains.

A JetBlue aircraft lands near United Airlines, American Airlines and Delta Airlines aircraft on the tarmac at Ronald Reagan Washington National Airport in Arlington. – REUTERSPIC American airlines at greater risk in Middle East DUBAI: US strikes on Iran’s nuclear sites could heighten the threat to American operators in the region, an organisation that monitors flight risks warned on Sunday, as some airlines cancelled flights to and from Dubai and Doha. proxies such as Hezbollah,” Safe Airspace said. Meanwhile, flight tracking website FlightRadar24, said airlines maintained flight diversions around the region. Its website showed airlines were not flying over Iran, Iraq, Syria and Israel. Safe Airspace said airspace risks could now extend to Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. “We continue to advise a high degree of caution at this time,” it said.

The BA and Singapore Airlines cancellations were only for Sunday, but Singapore said other flights between Singapore and Dubai may be affected as the situation remains “fluid”. BA, owned by IAG, said customers scheduled to travel between now and June 24 to Dubai and Doha can rebook up to and including July 6, free of charge. Israel’s carriers, El Al Israel Airlines, Arkia, Israir and Air Haifa, said earlier on Sunday they had suspended rescue flights bringing people back to Israel until further notice. Japan said it had evacuated 21 people, including 16 Japanese nationals, from Iran overland to Azerbaijan. It said it was the second such evacuation since Thursday and that it would conduct further evacuations if necessary. New Zealand said it would send a Hercules military transport plane to the Middle East on standby on Sunday to evacuate New Zealanders. The government was also in talks with commercial airlines on how they could help. – Reuters

Airlines continued to avoid large parts of the Middle East due to missile exchanges between Israel and Iran, the latest upheaval to travel in the region. Singapore Airlines said it cancelled flights from Singapore to Dubai following a security assessment and British Airways cancelled flights to and from Dubai and Doha. But following an early barrage of Iranian missiles, Israel reopened its airspace for six hours on Sunday to bring back those stranded abroad since the conflict with Iran began on June 13. Israel’s Airports Authority said so-called rescue flights to the country would expand this week with 24 a day from various destinations, “marking a significant step toward the gradual restoration of routine international travel”. Safe Airspace, a website run by OPSGROUP, said the US attacks on Iran may increase risks to American operators in the region. “While there have been no specific threats made against civil aviation, Iran has previously warned it would retaliate by attacking US military interests in the Middle East – either directly or via

They have chosen routings such as north via the Caspian Sea or south via Egypt and Saudi Arabia, even if these mean higher fuel and crew costs and longer flight times. Missile and drone barrages in a growing number of conflict zones represent a high risk to airline traffic. In the nine days since Israel attacked Iran, carriers have suspended flights to destinations in the affected countries, though there have been some evacuation flights from neighbouring nations and some bringing stranded Israelis home. With Russian and Ukrainian airspace also closed due to war, the Middle East has become a more important route for flights between Europe and Asia. Airlines are also concerned about a potential spike in oil prices following the US attacks, which will increase the cost of jet fuel. In the days before the US strikes, American Airlines suspended flights to Qatar and United Airlines did the same with flights to Dubai.