Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Local Syrian sources: An Israeli airstrike targeted a tank and artillery battalion in the city of Izraa in the Daraa countryside
Al Mayadeen's correspondent in eastern Lebanon: 12 martyrs and 5 wounded in Israeli raids targeting the outskirts of Wadi Fa'ra in the northern Bekaa Valley
Local Syrian sources: More than 10 Israeli raids targeted Sweida, with information about more than five casualties from the Internal Security Forces
Local Syrian sources: Initial reports indicate that approximately 15 people were killed or wounded at the al-Radwan family's guest house in Sweida following a direct exchange of gunfire
Israeli media, citing Israeli political sources, reported that the Shas movement is expected to withdraw from the government within less than 24 hours
Qatari Foreign Ministry: Negotiations to reach a ceasefire in the Gaza Strip are still in the first stage. We are continuing our efforts around the clock
Channel 14, citing a senior Israeli political source, reported: The attacks in Syria and Tel Aviv's offensive policy are coordinated with the Americans
Lebanese Ministry of Health's Emergency Operations Center: Six injured as a result of Israeli airstrikes on the Bekaa Valley in eastern Lebanon
Israeli media: The Israeli Air Force has launched a wave of large-scale attacks on southern Syria
UNRWA: One in 10 children in Gaza suffers from malnutrition

Oil prices spike as US-Israeli aggression on Iran sparks concerns

  • By Al Mayadeen English
  • Source: Agencies
  • 23 Jun 2025 09:06
  • 1 Shares
5 Min Read

Oil prices surge to five-month highs after US and Israeli strikes on Iran raise fears of supply cuts and disruptions in the Strait of Hormuz.

Listen
  • x
  • The oil tanker Palanca Rio arrives in Portland, Maine, the United States, Wednesday, April 2, 2025 (AP)
    The oil tanker Palanca Rio arrives in Portland, Maine, the United States, on Wednesday, April 2, 2025. (AP)

Oil prices soared to their highest levels since January on Monday, following joint US-Israeli airstrikes on Iran’s nuclear facilities, deepening fears of a broader war in the Middle East, and disruption of global crude supply.

Brent crude futures rose by $1.52, or 1.97%, reaching $78.53 a barrel by 0503 GMT. US West Texas Intermediate (WTI) crude climbed $1.51, or 2.04%, to $75.35. Earlier in the session, both benchmarks spiked by more than 3%, touching five-month highs of $81.40 for Brent and $78.40 for WTI, before easing slightly.

The price rally came in response to President Donald Trump’s announcement that he had “obliterated” Iran’s key nuclear sites over the weekend, as Washington formally joined the Israeli regime in its ongoing aggression on Iran. Tehran vowed to retaliate, raising the stakes for oil markets already on edge.

Eyes turn to Strait of Hormuz

With Iran being the third-largest crude producer in OPEC, the strikes and the threat of regional escalation have stoked fears of a potential closure of the Strait of Hormuz, through which nearly 20% of the world’s crude oil is shipped. Analysts warn that any disruption in the waterway could lead to a dramatic rise in global oil prices.

“The current geopolitical escalation provides the fundamental catalyst for Brent prices to traverse higher and potentially spiral towards $100, with $120 per barrel appearing increasingly plausible,” said Sugandha Sachdeva, founder of research firm SS WealthStreet in New Delhi.

According to Iran’s state-run Press TV, lawmakers in Tehran have approved a bill to close the Strait, though past threats to do so have never been acted upon.

Rising risks to infrastructure

“The risks of damage to oil infrastructure... have multiplied,” said June Goh, a senior analyst at Sparta Commodities, noting that while alternative pipeline routes exist, they cannot fully compensate if the Strait becomes inaccessible. She added that shipping companies may begin avoiding the region altogether, reducing available global supply.

Related News

Hezbollah condemns Israeli Bekaa massacre, urges action from Lebanon

Lavrov seeks clarity on Trump's ceasefire or secondary tariffs threat

In a Sunday report, Goldman Sachs projected that Brent could briefly spike to $110 per barrel if oil flows through the Strait were halved for one month. Even with no major long-term disruption, the bank said, global markets would likely remain strained for nearly a year.

Despite this, the bank still assumes that no substantial disruption to oil and natural gas supply will take place, emphasizing that major global powers have strong incentives to avoid a prolonged energy crisis.

Since the beginning of the war on June 13, Brent crude has climbed 13%, while WTI has gained approximately 10% as concerns rise over the region's future.

Hormuz closure to trigger global oil shock 

The CEO of the Russian Direct Investment Fund (RDIF) and Special Presidential Representative for Investment and Economic Cooperation, Kirill Dmitriev, warned that Iran's potential closure of the Strait of Hormuz would spark a global oil shock that would hit the United States as hard as the rest of the world.

In a statement posted on X, Dmitriev stressed that “oil is priced globally,” emphasizing that “if the Strait of Hormuz is shut, the U.S. won’t be spared. No one is immune from a global oil shock — prices at the pump will [skyrocket].”

Oil is priced globally. If the Strait of Hormuz is shut, the U.S. won’t be spared. No one is immune from a global oil shock - prices at the pump will 🚀. https://t.co/u4tsUQuDqC

— Kirill A. Dmitriev (@kadmitriev) June 22, 2025

Devastating economic fallout

Experts also warn that any closure of the Strait would not only impact global supply but also Iran’s own economy, as oil exports are a critical source of national revenue. “A sustained closure would inflict severe economic damage on Iran itself, making it a double-edged sword,” added Sachdeva.

The Strait of Hormuz, a narrow waterway between Iran and Oman that connects the Gulf to the Arabian Sea, handles about a fifth of global oil flows. Any disruptions to this corridor can have outsized effects on global trade and energy markets, according to The Financial Times.

Vessels face a growing array of threats in the region, including the potential for attacks by Ansar Allah forces and increased electronic warfare that could impair navigation systems. Insurers and brokers have expressed concern over the possibility that Ansar Allah forces could expand their targeting beyond US-, UK-, and Israeli-flagged ships to include broader international shipping, according to The Financial Times.

Senior Iranian lawmakers have raised the possibility of withdrawing from the Nuclear Non-Proliferation Treaty (NPT) and closing the strategic Strait of Hormuz in retaliation. Esmail Kowsari, a prominent member of Iran’s National Security and Foreign Policy Committee in Parliament, affirmed that the country had already implemented protective measures to safeguard its nuclear infrastructure.

He dismissed allegations of severe damage to Iran’s nuclear program, calling them “baseless claims," and insisted that “Tehran has accurate intelligence disproving such assertions.”

He further cautioned that Iran is prepared to escalate militarily if necessary, stating, “The closure of the Strait of Hormuz is on the table. We will definitely implement it if the situation requires.”

  • Israel
  • Israeli occupation
  • Iran
  • United States
  • Strait of Hormuz
  • Tehran
  • Donald Trump
  • Brent crude oil
War on Iran

War on Iran

Most Read

Hezbollah SG reveals war details on Al Mayadeen for the first time

Hezbollah SG reveals war details on Al Mayadeen for the first time

  • Politics
  • 8 Jul 2025
Yemen Navy sinks ETERNITY C ship, shares footage of operation

Yemen Navy sinks ETERNITY C ship, shares footage of operation

  • Politics
  • 9 Jul 2025
This satellite image from Planet Labs PBC shows damage after an Iranian attack at the al Udeid Airbase outside of Doha, Qatar, June 25, 2025 (Planet Labs PBC via AP)

Satellite images show Iran attack damaged US comms dome in Qatari base

  • Politics
  • 11 Jul 2025
An Israeli soldier abandons an excavator during an ambush by al-Qassam Brigades. Arabic text reads "The moment the soldier fled", July, 10, 2025 (Al Qassam Military Media)

Israeli media rue al-Qassam footage, alarmed by fighters among troops

  • Politics
  • 11 Jul 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
Syrian government forces deploy at the Mazraa village on the outskirts of city of Sweida, where clashes erupted between Bedouin clans and Druze factions, southern Syria, Monday, July 14, 2025 (AP)
Politics

Gulf-backed negotiations underway in Syria's Sweida to end clashes

UN: 798 Palestinians killed while trying to reach aid in Gaza
Palestine

UN: 798 Palestinians killed while trying to reach aid in Gaza

A damaged car is seen at a field that was hit in an Israeli airstrike in Nabi Sheet village, in Lebanon's eastern Bekaa Valley, Wednesday, August 21, 2024 (AP)
Politics

Hezbollah condemns Israeli Bekaa massacre, urges action from Lebanon

Palestinians walk next to the closed humanitarian aid distribution center of UNRWA, the UN agency helping Palestinian refugees in Jabaliya, Gaza Strip, on Tuesday, April 29, 2025 (AP)
Politics

Israeli regime cuts electricity, water supplies to UNRWA Gaza offices

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS