an oil pumpjack operating under tense geopolitical conditions in the Middle East
Global oil prices surged on Monday to their highest levels since January, after the United States joined Israel in striking Iranian nuclear facilities—an escalation that has heightened fears of a possible disruption in oil supply through the critical Strait of Hormuz.
Energy Markets React to Conflict
According to Reuters, Brent crude rose over 3% early in the session to hit $81.40 a barrel, while U.S. West Texas Intermediate (WTI) touched $78.40, before both settled slightly lower at $77.73 and $74.55, respectively. The sudden rise reflects traders’ concerns over the growing risk of supply bottlenecks as the conflict intensifies.
Iran, OPEC’s third-largest crude oil producer, has hinted at retaliatory actions, including the potential closure of the Strait of Hormuz—a key maritime passage that handles nearly 20% of the world’s oil. The threat has raised alarms in global markets, particularly for energy-dependent economies in Asia.
Expert Warnings and Strategic Risks
Analysts are warning that the situation could worsen if the strait is blocked. Sugandha Sachdeva of SS WealthStreet said that Brent prices could climb toward $100 or even $120 per barrel if the crisis escalates. Goldman Sachs projected that Brent might temporarily peak at $110 if oil flows are halved for even a month.
Sparta Commodities analyst June Goh noted that despite alternative pipelines, many crude shipments cannot be rerouted without major disruption, and oil tankers are already beginning to avoid the area.
Geopolitical Tensions and Global Reactions
Iran condemned the strikes and labeled U.S. President Donald Trump a “gambler” for joining Israel’s military operation. At the same time, countries like Japan and South Korea expressed concern over trade impacts. Russian President Vladimir Putin is set to meet with Iran’s Foreign Minister in Moscow to discuss the rising tensions.
Conclusion
As oil markets remain volatile and the Strait of Hormuz faces increased scrutiny, nations heavily reliant on Gulf energy exports are bracing for potential supply disruptions. The world now watches closely for diplomatic or military escalations that could further unsettle global energy and financial stability.
Source:
Reuters – “Oil surges to five-month high after US hits Iran’s key nuclear sites” (Published June 23, 2025)
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