From Yahoo Finance: 2025-06-20 15:35:00

Israel’s surprise attack on Iran led to a spike in oil prices, reaching around $75 a barrel. U.S. producers scrambled to secure gains through 2026, resulting in record hedging volumes. Aegis Hedging saw a surge in trading activity, handling roughly 25-30% of U.S. output.

The jump in prices on June 13, after Israel’s attack on Iran, saw U.S. crude futures rise 7% to around $73 a barrel. This was the largest single-day increase since July 2022. Producers took advantage of the opportunity to hedge their barrels.

When oil prices react to risk events like the Israel-Iran conflict, the front of the futures curve rises more than later contracts. This influences whether producers opt for short- or long-term hedging strategies. Aegis Hedging noted a six-month effect in this case.

Oil producers need an average price of $65 a barrel to profitably drill, according to the Dallas Federal Reserve Survey. With futures below $65 for weeks, producers were able to lock in prices above their budget. Companies like Black Mountain Energy stay disciplined amidst market volatility.

Aegis’ customers often have hedging policies, requiring a certain amount of production to be hedged by a specific time each year. Traders on June 13 exchanged the most $80 WTI crude oil call options since January on the Chicago Mercantile Exchange, anticipating further price upside.

Read more: Oil hedging volumes hit new records as US producers rush to lock in soaring prices