Oil Prices Spike to 5-Month High as U.S.–Israel Strike on Iran Raises Supply Fears

23 Jun 2025 , 10:23 AM

Oil prices jumped on Monday, climbing to levels last seen in January, as fresh conflict in the Middle East triggered fears over global crude supply. The surge followed U.S. airstrikes on Iran’s nuclear facilities over the weekend, an operation coordinated alongside Israel, as tensions in the region intensified.

Brent crude moved up sharply, trading at $78.89 a barrel by late morning in London, while U.S. West Texas Intermediate (WTI) was close behind at $75.71. Both benchmarks had spiked over 3% earlier in the session, Brent briefly hit $81.40 and WTI touched $78.40 before retreating slightly.

Markets reacted to a statement by President Donald Trump, who confirmed that the U.S. had “obliterated” Iran’s main nuclear sites. The news raised alarm bells among traders, with some warning of the risk of retaliatory action by Iran particularly around the Strait of Hormuz, a key artery for global oil movement.

Roughly one-fifth of the world’s crude oil supply flows through the strait, and any disruption there could ripple through global energy markets. Iran’s state broadcaster reported that lawmakers approved a motion to close the strait though similar threats in the past were never acted upon.

Shipping firms are also expected to stay cautious, with some vessels potentially avoiding the region altogether, further tightening supply chains. Since tensions flared on June 13, Brent prices have climbed about 13%, while WTI is up by around 10%. However, some believe this rally could cool off if the geopolitical heat doesn’t translate into real supply shocks.

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