Crude oil futures rise after Iran threatens retaliatory strike on energy assets

Crude oil futures traded higher on Tuesday morning after Iran threatened to attack energy assets in West Asia following recent US attacks on Iranian assets.

At 9.28 am on Tuesday, November Brent oil futures were at $97.48, up by 0.49 per cent, and October crude oil futures on WTI (West Texas Intermediate) were at $92.88, up by 1.53 per cent. September crude oil futures were trading at ₹8,778 on the Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday against the previous close of ₹8,760, up by 0.21 per cent; and October futures were trading at ₹8,501 against the previous close of ₹8,485, up by 0.19 per cent.

In a post on X, Mohammad Baqer Qalibaf, Speaker of Iran’s Parliament, said: “It’s simple: the oil and gas production chain here is sprawling, accessible, and exposed. American oil and gas companies across these waters and facilities share that exposure. Strike our assets and you get struck. We’ve already proven it. Ask the bases that are no longer viable.”

He was responding to US Defence Secretary Pete Hegseth’s post on X. Hegseth’s post said: “It’s simple: if Iran shoots at US ships, we will destroy (and sink) their oil tankers. All they have to do is not shoot at @USNavy. Iran’s oil tanker fleet is defenseless — Iran has no navy or air force. Our planes, ships & subs can strike them all, in @CENTCOM & @USPACOM.”

Meanwhile, US President Donald Trump said that oil prices will drop soon. In a post on Truth Social, he said: “Oil prices will drop precipitously, like everything else is dropping (but more!), when we WIN the war with Iran. Three Dollars a gallon, but ultimately, below Two Dollars a gallon. It will all happen quickly, and Iran will never have a Nuclear Weapon.”