Dilara Irem Sancar | Anatolia | Getty Images
Iranian oil minister criticized the impact of war-led destruction on oil markets on Wednesday, and Israel issued crude oil prices weeks after Tehran’s 12-day hostilities with Israel.
Speaking at the video conference of the Vienna OPEC Symposium, Mohsen Paknejad said: “Whether the reason is that the aggression of war has caused the supply of oil and gas resources to the international markets to destroy … the complications of energy producers, complications for energy producers, and the main body of the hard people’s economy.”
“I believe that all of us need to take a principled stand against litigation and the use of war litigation as a tool to pursue political goals,” he said.
Iran is the third largest producer of the influential Opec Alliance and holds the organization’s one-year presidency in 2025.
According to the OPEC Monthly Citation Independent Analysts Sources, the safety of Tehran’s supply (average of 3.3 million barrels per day in May) was under scrutiny as Iran conducted direct missiles and conducted direct missile and drone strikes with long-term regional enemies.
Tensions escalated when the United States attacked three Iranian nuclear facilities, Fordo, Natanz and Isfahan, which was repeatedly touted by U.S. President Donald Trump and Israeli Prime Minister Benjamin Netanyahu to defeat Tehran.
Iran and Israel finally agreed and have been implementing a ceasefire for Washington broker since June 24, which provided relief for oil prices, retreating amid concerns about long-term demand and increased output from some OPEC producers. OPEC+ representatives previously told CNBC that the security of Iranian supply remains a concern for producer groups when deciding on their output strategies.
Bob McNally, founder and president of Rapidan Energy Group, responded to the sentiment on Wednesday and told CNBC’s Dan Murphy that “geopolitics is by far the largest black swan” or unpredictable factor, and Iran is an ongoing concern in the recent dominance of the market.
“We didn’t walk through the woods with Iran,” he said. Regarding the reliance on the fate of Tehran’s nuclear program, Israel and the United States are considered to be the cause of their recent offensive.
“We think the last 20 years of kicking the can with Iran are likely to end,” he added.
Trump also took a strict and sanctions-based approach to attract Tehran during his first term, and he prioritized negotiations to achieve such a difficult nuclear deal with Iran during his second term. Late last month, the Iranian parliament approved a bill involving a bill to suspend cooperation with the International Atomic Energy Agency, the United Nations nuclear regulator.
“We’re going to either have diplomatic agreements, remove sanctions and a more benign situation, or, I think we’re just preparing for the next round of conflict, especially if Iran tries to engage in bombs or refuses to negotiate or rebuild the air defense system of this kind,” McNally noted.
Washington’s sanctions – Strengthen In the new wave on July 3, Iran’s crude oil exports were paralyzed, which was the backbone of the Middle East economy. Most of Tehran’s barrels are now heading to China, usually transported by Iran’s “Shadow Fleet” to off-grid tankers and intermediate shell companies’ “Shadow Fleet”.
