The front-month (Aug’25) Brent futures contract strengthened to $77.55/bbl this morning, where it met resistance and eased to $76.80/bbl at the time of writing (11:00 BST). The conflict between Israel and Iran continues to lend volatility to oil prices, with Israel striking the Khondab nuclear site near Arak in Iran overnight, including a partially built heavy-water research reactor. Heavy-water reactors produce plutonium, which can be used to make the core of an atomic bomb. Meanwhile, Iranian missiles hit four sites in central and southern Israel, including a hospital in South Israel, amid attempts to target Israeli military and intelligence headquarters near the medical centre. Russia’s investment envoy and chief of its sovereign wealth fund, Kirill Dmitriev, told Reuters that Russia, the United States and Saudi Arabia could jointly act to stabilise oil markets if needed. In other news, Chevron has sought non-binding bids for the sale of its 50% stake in Singapore Refining Company (SRC). At the time of writing, the Aug/Sep’25 and Aug/Feb’26 Brent futures spreads stand at $1.57/bbl and $5.35/bbl.
