**Oil Prices Soar After Israel’s Preemptive Strike on Iran**
The global oil market experienced a significant shock on June 13, as prices skyrocketed following an Israeli strike on Iran. This sudden increase has raised concerns about a potential broader conflict in the energy-rich Middle East that could disrupt global supplies.
According to reports from the BBC, Brent and Nymex crude prices jumped by over 10% after the Israeli attack, reaching their highest levels since January. Although prices later stabilized, they remained about 7.5% higher, with Brent at $74.50 a barrel and Nymex at $73.20.
This price surge comes at a critical time for Ukraine and its Western allies, who are intensifying efforts to minimize the Kremlin’s oil revenues – the backbone of Russia’s wartime economy. The war in Ukraine has been ongoing since February 2022, with Russia relying heavily on oil profits to sustain its military campaign.
**Ukraine Seeks Tougher Sanctions on Russia**
President Volodymyr Zelensky has urged the European Union to impose tougher sanctions on Russia, including a more aggressive price cap on oil exports. “A ceiling of $45 per barrel of oil is better than $60, that’s clear,” Zelensky said at the Ukraine-Southeast Europe Summit in Odesa.
The EU’s current $60 per barrel cap, introduced in December 2022, has curtailed some of Russia’s profits. However, the Kremlin continues to earn significant revenue, especially when market prices rise. European Commission President Ursula von der Leyen said on June 10 that the EU is considering lowering the cap to $45.
**G7 Countries Prepare for Price Cap Reduction**
Most G7 countries, excluding the U.S. and Japan, are prepared to proceed with reducing the price cap to $45, according to Reuters. This move will be discussed at the upcoming G7 summit in Canada between June 15 and 17.
The Israeli Prime Minister, Benjamin Netanyahu, announced early on June 13 that Israeli forces had launched “Operation Rising Lion,” a preemptive strike targeting Iran’s nuclear program. The strike aimed to disrupt Iran’s main nuclear enrichment site in Natanz and target key nuclear scientists.
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