While crude oil transport has not been affected directly, concerns remain that Iran could move to block the Strait of Hormuz, a crucial passage for oil tankers.
Brent crude futures rose 1.4% to $74.24 per barrel while U.S. West Texas Intermediate crude futures gained 1.2% to $71.06 per barrel, as of 5.03 am ET.
With tensions continuing to flare in the Middle East, the global energy supply is on tenterhooks, with Israel hitting Iran where it stands to hurt the most.
According to the data published by OPEC, the cartel increased its production output by 154,000 barrels a day, despite announcing plans to improve it by 411,000 barrels during the month.
Goldman Sachs analysts said in a recent note that the conflict could result in Iran’s 1.75 million barrels per day supply being taken out of the market.
Crude oil prices and the ETFs that track the commodity are surging higher amid escalating tensions in the Middle East, sending prices to a two-month high.
On Saturday, the Organization of the Petroleum Exporting Countries and its allies, including Russia, pledged to raise production by 411,000 barrels per day in July.
CEO Darren Woods stated that ExxonMobil stress-tested its business against “more punitive scenarios” last year and, based on that review, plans to maintain investments and shareholder returns even if oil prices decline further.
