Oil Prices Jumps Up by 10% After Israel Attacked Iran
On June 13, 2025, Israel launched a powerful attack on Iran, targeting key nuclear and military sites. This unexpected move triggered global concern, especially as tensions escalated in the Middle East. One of the biggest worries was about the Strait of Hormuz, a crucial passage through which a large portion of the world’s oil is transported.
Brent crude oil prices surged by 11.3%, reaching around $77.20 per barrel — the biggest single-day rise in over three years.
WTI (West Texas Intermediate) oil also climbed as much as 14%, later settling close to $74 to $75 per barrel.
Even though prices dipped slightly after the spike, they still remained 6% to 9% higher than before the strike.
Why Did Oil Prices Increase?
- Risk to Oil Supply: The Strait of Hormuz, which handles about one-third of the world’s seaborne oil, may face disruptions if the conflict worsens.
- Investor Caution: Due to increased uncertainty, investors pulled out of stock markets and moved toward safer options like oil, gold, and stable currencies.
- Fear of Further Escalation: Experts warned that if Iran retaliates strongly, Brent prices could cross $80 per barrel.
Stock Market Reaction
- Energy company shares (e.g., Shell, BP) saw gains.
- Indian oil importer stocks fell by around 6%.
Gold Prices: Gold went up by about 1% as people looked for safe investments.
Stock Indices: U.S. and European markets dropped by 1% to 1.8% in early trading.
What to Expect Next
- Iran’s Response: Iran confirmed it launched more than 100 drones toward Israel, which could lead to more military action and further market instability.
- Oil Reserves: Countries like the U.S. might consider releasing oil from their reserves to help control prices if the situation escalates.
This sharp rise in oil prices highlights how geopolitical conflicts can affect global energy markets and economies. The situation remains tense, and further developments may lead to more market shifts.
