Experts: International situation may drive up oil prices

If Iran does not quickly agree to a nuclear deal, the US may decide to strike a key Iranian nuclear facility, which could cause a rise in oil prices in the near term and growing risks to tankers and regional energy facilities, experts said June 17.

Right now, this crisis can end if Iran accepts the US deal on the table, said Brett McGurk, who served in National Security Council and State Department positions under the Biden, Obama and Bush administrations, as well as the first Trump administration.

"Or they could not do that, and I think we're looking at the possibility of a US strike on Fordow," McGurk said at the Atlantic Council Global Energy Forum in Washington.

Fordow is an Iranian nuclear enrichment facility buried deep in a mountain.

If the Trump Administration uses the threat of a strike to try to get a deal, it must be prepared to back it up, McGurk said. "So, it's a deal, or it's a military strike. I think that's where we're headed."

Crude oil futures settled higher June 17 after US President Donald Trump signaled potential escalation in the conflict between Israel and Iran.

NYMEX July WTI settled $3.07 higher at $74.84/b and ICE August Brent climbed $3.22 to $76.45/b.