Oil Prices Hit Five-Month High as U.S. Joins Israel in Attacking Iran
Global oil prices soared on Monday, reaching levels not seen in five months, after the United States joined Israel in a coordinated military strike on Iran’s nuclear facilities. The geopolitical tension triggered fears of major oil supply disruptions, especially through the strategic Strait of Hormuz.
Brent crude rose by $1.52, or 1.97%, to $78.53 per barrel, while U.S. West Texas Intermediate (WTI) crude climbed $1.51, or 2.04%, to $75.35 per barrel by 5:03 a.m. GMT. Earlier in the trading session, Brent and WTI had surged over 3%, hitting $81.40 and $78.40 respectively — their highest levels since January.
The sharp rise in oil prices followed President Donald Trump’s announcement that the U.S. had “obliterated” Iran’s key nuclear sites over the weekend. The strikes were part of an escalating conflict involving Israel, further inflaming tensions in the Middle East.
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Iran, which is OPEC’s third-largest oil producer, has responded with threats of retaliation. There is growing concern that Iran could act on its repeated warnings to block the Strait of Hormuz, a vital maritime route through which nearly 20% of the world’s oil supply is transported.
According to Sugandha Sachdeva, founder of New Delhi-based SS WealthStreet, “The current geopolitical escalation provides the catalyst for Brent prices to trend higher — potentially pushing towards $100, with $120 per barrel increasingly plausible.”
Iran’s Press TV reported that the Iranian parliament approved a motion to close the strait — a move that, while previously threatened, has never been executed. The Strait of Hormuz closure would not only disrupt global oil flows but also severely impact Iran’s own oil exports, making the decision economically risky for Tehran.
As missile and airstrikes between Iran and Israel continued into Monday, concerns grew over potential damage to oil infrastructure in the region. June Goh, senior analyst at Sparta Commodities, stated that while alternative pipelines exist, they would not be able to handle the full volume if the strait becomes impassable. Many oil shippers may also avoid the region due to the heightened risk.
Goldman Sachs warned in a recent report that if oil flows through the Strait of Hormuz were halved for one month, Brent crude could temporarily spike to $110 per barrel, with residual supply disruptions keeping prices elevated for nearly a year.
Despite rising prices, the bank maintained its assumption that there would be no long-term disruption to global oil and natural gas supply, citing strong global efforts to prevent a sustained crisis.
Since the outbreak of conflict on June 13, Brent crude has gained 13%, while WTI crude is up 10%.
Sachdeva noted that while closing the Strait of Hormuz would be a powerful retaliatory measure, such a move could seriously backfire economically on Iran, given its dependence on oil revenues.
Meanwhile, international voices are calling for calm. Japan urged for de-escalation, while South Korea’s vice-minister of industry expressed concerns about how the rising oil prices could affect the country’s trade and economy.
Although Middle Eastern markets like Qatar, Saudi Arabia, and Kuwait appeared relatively stable on Sunday, investors remain on edge as oil markets brace for continued volatility and potential price spikes in the coming days.
