Keep an eye on oil prices.
Iran just said it would begin enriching uranium to 60% purity following an incident at its Natanz nuclear facility on April 11. The last time Iran raised purity levels was January 2021, when it raised it to 20% purity. That news sent oil prices from about $47.18 to about $54.
With pressure now likely to increase with 60%, oil prices could break higher, near-term. At the moment, oil is consolidating just under $60 a barrel. From here, we could see a near-term test of $67.50 a barrel, depending on what happens with enrichment.
“Iran’s IR-9 centrifuge, when operational, would have the ability to separate uranium isotopes more quickly than the current centrifuges being used, thereby enriching uranium at a faster pace,” reports CNBC. “Since late February, Iran has ceased abiding by a confidential agreement with the U.N.’s nuclear watchdog reached as part of the landmark 2015 nuclear deal.”
Should the situation intensify, oil prices could easily run higher. After all, the latest move raises concerns about nuclear talks.