Oil surges following demise of Iran’s President

Brent futures moved higher following the news of Iran’s President Ebrahim Raisi’s death in a helicopter crash.

PHOTO: Flags of Iran and Saudi Arabia. Getty Images

Brent’s price has hit $84.30/bbl in early morning trade today, reaching the highest level since 10 May, amid growing concerns about political uncertainty in the world’s leading oil producers – Iran and Saudi Arabia.

The Iranian President, the country’s foreign minister Hossein Amirabdollahian and several other officials were killed in the chopper crash on Sunday, state-owned media agency IRNA reported. The helicopter wreckage was discovered in East Azerbaijan’s Varzaqan region, the report added.

This news has sparked concerns about the broader geopolitical ramifications in the global oil market and put upward pressure on Brent futures. Crude oil prices have gained “amid a broader risk-on tone” in the oil market, ANZ Bank’s senior commodity strategist Daniel Hynes said.  

Separately, Saudi Arabia’s crown prince Mohammed bin Salman canceled his visit to Japan on Monday, on grounds of serious health-related issues with the country’s 88-year-old King, Reuters reported citing Japan's Chief Cabinet Secretary Yoshimasa Hayashi.

 By Aparupa Mazumder 

Please get in touch with comments or additional info to news@engine.online