Oil at the highest level in 5 months after American strikes to Iran
June 23, 2025
Oil
Oil prices jumped during the early two -level trading since January, as Washington’s move at the beginning of the week to join Israel to attack Iranian nuclear establishments fueling concerns about supplies.
Market
By 0117 GMT, Brent crude futures rose $ 1.92 or 2.49 percent to $ 78.93 a barrel.
US West Texas Intermediate crude contracts rose by $ 1.89 or 2.56 percent to $ 75.73, according to Reuters data.
Both of the two jumped by more than three percent earlier in the session to 81.40 dollars and $ 78.40, respectively, for the barrel, the highest level in five months, before they abandoned some gains.
The high prices came after US President Donald Trump said he “erased” the main Iranian nuclear sites in strikes at the beginning of the week, to join an Israeli attack in an escalation of the conflict in the Middle East with Tehran pledged to defend itself.
Iran is the third largest crude producer in the Organization of Petroleum Exporting Countries (OPEC).
Market dealers expect further price rise amid increasing fears that Iranian revenge will include the closure of the Strait of Hormuz, through which almost five global crude supplies flow.
The Iranian Press TV channel reported that the Iranian parliament approved a procedure to close the strait. In the past, Iran threatened to close the strait, but it never implemented this step.
“The risk of oil infrastructure is damaged,” said John Joe, chief analyst at Sparta Communes.
She added that although alternative roads are across the pipelines outside the region, there will remain a quantity of crude oil that cannot be exported entirely if the Strait of Hormuz is closed. She added that the freight companies will increase away from the region.
Goldman Sachs Bank said in a report issued on Sunday that Brent crude may reach its peak for a short period of $ 110 a barrel if oil flows decrease through the biological waterway to half for a month, and they remained low by 10 percent during the next 11 months.
The bank is still assumed that there is no major disturbance in oil and natural gas supplies, and to add global incentives to try to prevent continuous and huge interruption.
Brent crude has risen 13 percent since the conflict began on June 13, while West Texas Intermediate crude increased by about 10 percent.
Analysts said it is unlikely that the current geopolitical risk bonus will continue without tangible disorder in the supplies.
Saksu Bank: We expect that there is no interruption in oil supplies
