Oil Prices Surge Over 7% as Israel‑Iran Conflict Sparks Supply Concerns
Crude oil prices jumped more than 7% after Israeli airstrikes on Iran heightened fears of disruptions to Middle East oil exports and the Strait of Hormuz.
image for illustrative purpose
Oil markets reeled on June 13, 2025, after a sharp escalation in the Israel‑Iran conflict. The price of Brent crude leapt over 7%, settling at about $74.23 per barrel, while U.S. benchmark WTI crude rose around 7.3% to $72.98—marking the largest single‑day jump this year.
The surge was triggered by Israel launching strikes on Iranian military and nuclear sites, followed by retaliatory missile fire—dramatically increasing the risk of disrupting crude exports from the region .
Market concerns are centered on two major supply threats:
- Iran’s reduced oil output—with exports of over 2 million barrels per day potentially affected .
- Risk to the Strait of Hormuz—a critical chokepoint handling nearly 20% of global seaborne oil, now under threat of disruption.
Investors responded by shifting to safe-haven assets like gold, USD, and U.S. Treasuries, while global equity markets saw notable declines—India’s indices dropped about 0.7%, and U.S. shares tumbled over 1%.
Analysts warn prices could climb further if the conflict persists, with some projecting crude may surge past $100–120 per barrel, intensifying inflationary pressures worldwide.
- Continued escalation around the Strait of Hormuz and impacts on shipping.
- Actions by OPEC+ and strategic reserves to stabilize global oil supply.
- Central bank responses to rising energy-driven inflation.
