Oil prices surge after Israeli strikes on Iran

LONDON, June 13, 2025 – Crude oil prices have surged more than 9% following Israeli military strikes on Iran’s nuclear and military infrastructure, sparking fears of supply disruptions in the region.

Brent crude rose to USD 75.36 per barrel, while West Texas Intermediate climbed to USD 71.76 per barrel, as traders responded to escalating conflict between the two regional powers. Analysts said the market reaction reflected the threat to oil flows through the Strait of Hormuz, a strategic chokepoint through which around 20 million barrels of oil transit daily.

The attack, dubbed Operation Rising Lion, took place overnight on June 12-13 and targeted Iran’s nuclear facility at Natanz, along with several airbases and missile infrastructure. The strikes reportedly killed high-ranking officers from Iran’s Revolutionary Guards and caused extensive material damage.

Iran responded by launching more than 100 drones toward Israel and threatening to target US assets in the region.

J.P. Morgan warned that crude prices could reach as high as USD 120 per barrel in the event of significant supply disruption, especially if shipping through the Strait of Hormuz were to be impeded.

The market shock reverberated through global equities, with Dow Jones futures falling 453 points in early trading and airline stocks retreating on expectations of rising jet fuel prices and disrupted flight routes across the Middle East.

The US administration said it was not involved in the strikes. The US military remains on high alert, and several Gulf states have increased security at export terminals.

The potential for further escalation has left the energy market bracing for increased volatility, with futures pricing in a risk premium for Middle East supply disruptions and hedging activity rising sharply on Friday.

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