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Global oil prices surged Wednesday amid supply-side pressures driven by escalating geopolitical tensions between the United States, Israel, and Iran.
As of June 12, Brent crude futures rose more than 4% to surpass $70 per barrel, while U.S. West Texas Intermediate (WTI) crude climbed nearly 5% to settle at $68. The sharp increase followed remarks from U.S. President Donald Trump, who expressed reduced confidence in securing a peaceful resolution with Iran.
In an interview published Wednesday by the New York Post, Trump stated that while he remained committed to preventing Iran from acquiring a nuclear weapon, he was “much less confident” in the prospects for a diplomatic solution than he had been several months earlier.
“They seem to be delaying, and I think that’s a shame,” he was quoted as saying.
Reports also indicated that the United States is preparing to evacuate non-essential personnel from its embassy in Baghdad, further heightening market concerns over a potential escalation in the Middle East.
Wednesday’s rebound followed a prolonged period of weakness in oil markets. In April, Brent crude dropped below $60 per barrel for the first time since 2021, amid rising concerns of a global economic downturn.
The decline was largely triggered by Trump’s announcement of sweeping “liberation day” tariffs on April 2, which imposed broad duties on all imported goods.
Although the administration later introduced a temporary relief period and adjusted the tariffs to a 10% baseline level, the initial impact had already dampened global demand expectations. As a result, Brent prices remained in the $60–$65 range throughout May.
In a separate development, a coalition of eight major producers within the OPEC+ alliance had announced plans to raise oil output by 411,000 barrels per day beginning in July. This decision follows a prior agreement reached on Dec. 5, 2024, and reflects the group’s strategy to adapt supply levels to ongoing market fluctuations.
The coalition also stated that it will reassess production targets at its next meeting, scheduled for July 6. Any potential revisions will be guided by prevailing price movements and geopolitical developments.
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