Oil Prices: Iran Attack Impact
- Oil prices experienced their most important increase in over three years Friday,fueled by Israeli air strikes against Iran.
- Brent crude, the international benchmark, jumped roughly 8% to $74.88 a barrel in early afternoon trading in Asia.
- michael Alfaro, chief investment officer at Gallo Partners, described the attack on Iran’s nuclear facilities as a "seismic escalation." He anticipates the likelihood of a prolonged conflict will...
Following israeli strikes, oil prices have surged, with Brent and WTI crude each jumping over 8%, signaling heightened market volatility. This decisive escalation in the Middle East raises meaningful concerns about the energy sector, particularly regarding oil supplies. The Strait of Hormuz, a critical artery for global oil transport, is now at risk, alongside major oilfields. Investors are, therefore, turning to safe-haven assets like gold. Discover how this situation impacts global markets and how News Directory 3 keeps you informed on the latest developments. Will OPEC+ intervene, and what will Iran do next?
Oil Prices Surge Amid middle East Tensions
Updated June 13,2025
Oil prices experienced their most important increase in over three years Friday,fueled by Israeli air strikes against Iran. The strikes heightened concerns about potential disruptions to energy supplies in the region, prompting a flight to safe haven assets.
Brent crude, the international benchmark, jumped roughly 8% to $74.88 a barrel in early afternoon trading in Asia. U.S. marker West Texas Intermediate (WTI) also rose more than 8%, reaching $73.67.Traders are worried the conflict could impact energy supplies from one of the world’s key oil and gas producing areas.
michael Alfaro, chief investment officer at Gallo Partners, described the attack on Iran’s nuclear facilities as a “seismic escalation.” He anticipates the likelihood of a prolonged conflict will keep oil prices elevated.
The energy sector faces multiple risks from renewed conflict.The Strait of Hormuz, a narrow waterway separating Iran from Gulf states, is a crucial passage for about a third of the world’s seaborne oil supplies. Iran has repeatedly threatened to close the strait if attacked.
Major oilfields in Saudi Arabia and Iraq are within range of Iranian missiles and drones. In 2019,Iran was widely suspected of attacking Saudi Arabian oil facilities,causing a brief surge in crude prices.
Qatar, a leading supplier of liquefied natural gas (LNG), relies on the Strait of Hormuz for shipments to international markets, at a time when global supplies are already tight.
Gold, often seen as a safe haven asset, increased by approximately 1.2% during Asian trading hours, reaching $3,427 per ounce.
“We’re staring down the barrel of a prolonged conflict that’s almost certain to keep oil prices elevated,” said Michael Alfaro, chief investment officer at Gallo Partners.
Helima Croft, a former CIA analyst with RBC capital Markets, questioned whether Iran would target regional energy infrastructure in response to the strikes.
“The key question is whether Iran seeks to internationalise the cost of tonight’s action by targeting regional energy infrastructure,” Croft said.
Historically, U.S. presidents have intervened to manage oil prices. After Russia’s invasion of Ukraine, the Biden management released about 300 million barrels of crude from the Strategic Petroleum Reserve (SPR). The SPR currently holds around 400 million barrels, below its 727 million barrel capacity.
Traders are closely watching for any response from OPEC+. Saudi Arabia, a key member, has already condemned Israel’s attack. The group has been increasing production but may face pressure to further boost supplies.
Asian stock markets reacted negatively. The Nikkei 225 index fell by about 1.3%, while South Korea’s Kospi and the Hang Seng in hong Kong declined by 1.28% and 0.7% respectively.
bitcoin also experienced a sell-off, dropping as much as 3% before recovering slightly to $104,000.
What’s next
The market will be closely monitoring Iran’s response and any potential disruptions to oil supplies in the Middle East. Further escalation could lead to sustained higher prices and increased volatility.