Oil prices surge up to 5% after US strikes on Iran's nuclear sites, raising supply shock fears.

From Yahoo Finance: 2025-06-22 18:12:00

Oil futures surged up to 5% after US strikes on Iran’s nuclear sites raised fears of a supply shock. Brent crude rose by 5.7% to over $80 per barrel, while West Texas Intermediate jumped over 4% to $77 per barrel. Traders are concerned about Iran’s potential retaliation and the impact on global oil supply.

Oil prices had already increased due to conflict between Israel and Iran, with traders awaiting Trump’s decision on Iran. Iran’s parliament voted to close the Strait of Hormuz, a vital waterway handling 20% of global oil flows. The final decision rests with Iran’s Supreme National Security Council and Supreme Leader.

Wall Street now sees a significantly heightened risk of oil supply disruption. Analysts warn that if oil exports through the Strait of Hormuz are affected, prices could easily reach $100 per barrel. JPMorgan analysts predict prices could rise to $120-$130 per barrel if the conflict escalates, leading to higher gasoline and diesel prices.

Iran may retaliate by supporting attacks on commercial shipping or targeting export facilities in neighboring countries if the conflict escalates. The duration of any disruption will impact oil prices; quick restoration could limit gains, while long-term supply risks could lead to sustained price increases. Previous military conflicts involving Israel have not had lasting impacts on oil prices.

Major events involving regional oil producers have historically led to sustained oil market movements. Regime changes in oil-producing countries, leadership transitions, coups, revolutions, or political shifts have caused significant oil price spikes. OPEC+ had increased output before the conflict, shaping the market response. Market analysis by Senior Business Reporter Ines Ferre.



Read more at Yahoo Finance: Oil prices surge after US strikes on Iran with Strait of Hormuz status in focus