On Friday, 13 June, oil prices rose sharply by more than 6% after large-scale Israeli strikes on Iran, which escalated tensions in the Middle East and raised concerns about possible energy supply disruptions, Reuters reports.
Futures for North Sea Brent crude rose by $6.29 (9.07%) to reach $75.65 per barrel with an intraday peak of $78.5, the highest since 27 January. US WTI rose even more – by $6.43 (9.45%) to $74.47 per barrel, reaching a high of $77.62, the highest level since 21 January.
These price fluctuations were the largest since 2022, when Russia’s invasion of Ukraine triggered a global energy crisis.
Israel has confirmed strikes on Iranian nuclear facilities and military infrastructure, announcing the launch of a large-scale campaign to prevent Iran from acquiring nuclear weapons. ING analysts emphasise that geopolitical uncertainty increases the risk of an oil premium, given the potential threat of a supply disruption from the region.
Of particular concern is the possibility of Iran blocking the Strait of Hormuz, a strategic oil route through which more than 20% of the world’s maritime oil supplies pass. Oil traders in Singapore warn that everything will depend on Iran’s further actions and the US response.
MST Marquee Senior Analyst Saul Kavonik does not rule out retaliatory attacks on the region’s oil infrastructure by Iran. Meanwhile, US Secretary of State Marco Rubio said that the US was not involved in the Israeli operation, calling on Tehran to refrain from attacking US military and diplomats.
Global markets are watching with concern as the crisis threatens to destabilise the oil balance for a longer period.
