Brent crude has climbed above $77/b, while EUA carbon prices have hit a seven-year high.
Tensions in the Middle East continue to impact the oil market, as conflict between Syrian-based Iranian forces and the Israeli army has led to the US’s withdrawal from the Iran nuclear deal.
Officially known as the Joint Comprehensive Plan of Action, the deal imposes sanctions on the development of nuclear technology in the country, also impacting other energy sources.
The US withdrawal from this pact could jeopardise business deals and trading between Iran and other nations which could see up to 1 million barrels of Iranian oil taken off the market.
Supply levels could come under further strain if tensions between Israel and Iran worsen, with the threat of direct war between the two nations an on-going concern.
This news further supported an already bullish market, with efforts made by OPEC nations to cut production contributing to gains in previous months; Brent now trades above $77.4/b.
Meanwhile, EUA carbon prices are also on the rise, hitting a 7-year high yesterday as demand has exceeded supply, with additional support also coming from other fuel markets. The carbon contract due to expire in 2019 has increased by 4.3% to trade at €14.77/tn.