Potential conflict between Israel and Iran could drive global oil prices up, risking market volatility.

From Yahoo Finance: 2025-06-18 16:19:00

The conflict between Israel and Iran could drive global oil prices to $120 a barrel, with West Texas Intermediate at a one-year high and Brent Crude nearing a five-month peak. President Trump’s national security meeting raises speculation of U.S. involvement, increasing market volatility, according to ING Financial Service.

The potential for disruption in the critical Strait of Hormuz, due to the conflict, is a key concern for the market. ExxonMobil CEO Darren Woods also worries about the impact on oil shipments through the waterway, which handles almost a third of global seaborne oil trade. 20% of global oil consumption flows through the strait.

A significant disruption in oil flows could push prices to $120 per barrel, with the potential for even higher prices if disruptions persist. President Trump’s letter to Iran’s Supreme Leader warns of military action if a deal isn’t made over Iran’s nuclear program. Strategic petroleum reserves may need to be tapped, including the U.S.’s 400 million barrels. OPEC+ could also use its spare production capacity of over 5 million barrels per day to help.

Read more: Major oil price shock looming as Israel-Iran conflict threatens critical global shipping passage