Oil prices have experienced significant volatility in recent trading sessions due to escalating tensions between Israel and Iran. The price of Brent crude briefly exceeded $90 per barrel on Friday morning before dropping back to $86 per barrel, reflecting the uncertainty surrounding the conflict.

Reports of Israeli strikes on Iranian soil initially drove Brent crude above the $90 mark, but the price swiftly retreated following Tehran's dismissal of the impact of the strikes. The market's attention has shifted towards geopolitics, overshadowing the issue of the reimposition of oil sanctions on Venezuela.

The United States Department of State allowed its six-month waiver, permitting Venezuela to trade its crude freely, to expire. The decision was made due to President Maduro's failure to fulfill pre-election commitments. Oil companies were given a 45-day grace period to wind down operations in Venezuela.

In an effort to counter China's purchases of Iranian crude oil, the U.S. House of Representatives overwhelmingly passed a bill imposing sanctions on transactions between Chinese financial institutions and Iran. The legislation will now advance to the Senate, facing an uncertain fate.

The European Commission is set to sue Germany over its gas tariffs. Germany has been charging its neighboring countries an additional fee for purchasing gas from its storage sites, which runs counter to the EU's single-market rules. The "neutrality charge" fee has tripled since its introduction in October 2022.

Senior White House adviser John Podesta has hinted at the possibility of releasing strategic petroleum stocks over the summer to maintain affordable gasoline prices. This move comes as high oil prices have disrupted the U.S. Energy Department's plans to replenish the Strategic Petroleum Reserve.

Meanwhile, the Biden administration has finalized a regulation that blocks oil and gas development on 40% of Alaska's National Petroleum Reserve. The proposal to connect the Ambler Mining district to the state's road infrastructure has also been rejected.

Amidst the Israel-Iran conflict, European gas prices have seen a firm increase. Europe's benchmark TTF prices have risen to €31-32 per mmBtu ($11/mmBtu), as buyers in the region become wary of potential disruptions in the Strait of Hormuz.

The volatility in oil prices and the uncertainty surrounding global conflicts continue to shape market dynamics. As tensions remain high, stakeholders closely monitor geopolitical developments for the impact they may have on the energy sector.

Source: Oilprice.com