From Yahoo Finance: 2025-06-13 14:42:00

Tensions between Israel and Iran over recent attacks on nuclear facilities could push oil prices above $100 a barrel, causing concerns about global oil supply disruptions. Oil futures surged following the attacks, with West Texas Intermediate crude oil futures up 7.5% at $73.12 a barrel. Analysts warn of potential inflation impact if oil prices rise further.

Analysts from JPMorgan caution that a full-scale conflict between Israel and Iran could result in oil prices exceeding $100 per barrel for the first time since 2022. Every $10 increase in oil prices could lead to a half-percentage-point rise in the inflation rate, potentially impacting the global economy.

Despite the spike in oil prices due to Middle East tensions, most analysts believe that the possibility of Iran closing the Strait of Hormuz, a key oil shipping route, is unlikely for now. However, any escalation in conflict leading to disruptions in regional oil infrastructure could impact global oil supply and gas prices. Experts predict oil prices will stabilize after the recent surge.

Goldman Sachs analysts acknowledge that the conflict between Israel and Iran will increase oil’s risk premium in the short term but maintain their forecast that West Texas Intermediate crude oil will trade around $55 a barrel by the end of the year. The situation remains fluid, and market data is constantly evolving.

This update reflects the impact of recent market events on oil prices and inflation forecasts. For more in-depth analysis and coverage of the implications of the conflict between Israel and Iran on global oil markets and inflation rates, visit Investopedia for the original article.

Read more: What Israel-Iran Fighting Could Mean for Oil Prices and Inflation