Oil prices expected to surge following US strikes on Iran with potential threat to global supply

From Yahoo Finance: 2025-06-22 17:21:00

Oil prices are expected to open at least $5 per barrel higher following US strikes on Iran’s nuclear sites, with potential to reach $80 per barrel. Iran’s parliament voted to close the Strait of Hormuz, threatening 20% of global oil flows. Analysts warn of potential $100 oil if exports are affected.

Possible retaliation moves from Iran include supporting Yemen’s rebels and targeting neighboring countries’ export facilities. Analysts suggest a closure of the Strait of Hormuz could push oil prices to $120-$130 per barrel, raising gasoline and diesel prices by up to $1.25 per gallon, with national averages potentially reaching $4.50 or $6.00 in California.

The key issue isn’t just potential disruption, but how long it lasts. Analysts predict a stronger and more sustained move higher in oil prices if Iran’s response causes lasting damage or introduces long-term supply risk. Major military conflicts involving Israel have historically had limited impact on oil prices.



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