Oil prices initially surged following U.S. military strike on Iran, but later settled flat to down.

From Yahoo Finance: 2025-06-22 20:30:00

The price of oil remained steady after an initial rise following the U.S. military strike on Iran. Diesel prices showed the most significant increase globally, with Brent up 2.44% to $78.89/b and West Texas Intermediate up 2.52% to $75.70/b. RBOB gasoline also rose 2.19% to $2.3806/gallon.

Oil prices later settled flat to down from Friday on the commodity exchange. ULSD was down .09% while WTI and Brent were slightly up. News of oil tankers passing through the Strait of Hormuz helped stabilize markets after the attack on Iran.

Analysts noted that the current oil price reflects potential turmoil. The Strait of Hormuz, vital for oil exports, faces uncertainty. About 20% of global oil consumption passes through the Strait, with alternative routes not able to fully replace exports.

Iran’s threat to close the Strait of Hormuz raised concerns. Secretary of State Marco Rubio urged China to intervene, as they heavily rely on Iranian oil. Closing the Strait would impact Iranian exports significantly, affecting their main revenue source.

The spread between crude and diesel prices widened, with diesel showing strength. Energy Aspects highlighted risks to diesel supply due to the conflict, with Israeli refineries non-operational. Iran, a net diesel exporter, might need to import due to supply disruptions.

Diesel inventories in Europe were tight, while U.S. inventories were below average but rising in recent weeks. The market for middle distillates, including diesel, faced challenges due to escalating tensions in the Middle East, impacting supply and demand dynamics.



Read more at Yahoo Finance: oil prices fall back after short-lived surge in early trading