Oil jumps to 5-month high after US strikes on Iranian nuclear facilities

Oil prices jumped on Monday to their highest level since January, as weekend actions by the US to join Israel in attacking Iran’s nuclear facilities heightened supply fears, UNN reports with reference to Reuters.

DetailsBrent crude futures rose $1.52 or 1.97% to $78.53 a barrel at 05:03 GMT (08:03 Kyiv time). US West Texas Intermediate crude increased by $1.51 or 2.04% to $75.35.

Both contracts jumped more than 3% earlier in the session to $81.40 and $78.40 respectively, reaching five-month highs before losing some gains.

The price increase occurred after US President Donald Trump announced that he had “destroyed” Iran’s main nuclear facilities during weekend strikes, joining the Israeli attack in an escalation of the conflict in the Middle East, as Tehran vowed to defend itself.

Trump announced a US attack on Iran’s nuclear facilities22.06.25, 03:17 • 4896 views

Iran is the third largest crude oil producer in OPEC.

Market participants expect further price increases amid growing fears that Iran’s retaliatory actions may include closing the Strait of Hormuz, through which approximately one-fifth of the world’s crude oil supplies pass.

Oil could jump to $90 if the Strait of Hormuz is closed – Citigroup20.06.25, 17:43 • 2646 views

“The current geopolitical escalation is a fundamental catalyst for prices (Brent) to go up and potentially reach $100, with $120 per barrel seeming increasingly plausible,” said Sugandha Sachdeva, founder of New Delhi-based research firm SS WealthStreet.

Iranian Press TV reported that the Iranian parliament approved measures to close the strait. Iran has threatened in the past to close the strait, but has never followed through on its promises.

The Iranian Parliament has voted to close the Strait of Hormuz, through which 20% of the world’s oil passes22.06.25, 16:42 • 137063 views

Iran and Israel exchanged airstrikes and missile attacks on Monday, as global tensions rose over Tehran’s expected response to the US attack on its nuclear facilities.

“The risks of damage to oil infrastructure… have increased many times over,” said Sparta Commodities senior analyst June Goh.

While there are alternative pipeline routes from the region, there would still be a volume of crude oil that could not be exported if the Strait of Hormuz becomes unavailable. Shippers would increasingly stay away from the region, she added.

Goldman Sachs said in a Sunday report that Brent could briefly reach $110 a barrel if oil supplies through the critical waterway were halved for a month and remained 10% lower for the next 11 months.

The bank still does not foresee significant disruptions to oil and natural gas supplies, adding that global incentives will try to prevent sustained and very large disruptions.

Brent has risen by 13% since the conflict began on June 13, while WTI has risen by approximately 10%.

Given that the Strait of Hormuz is essential for Iran’s own oil exports, a vital source of its national income, a prolonged closure would cause severe economic damage to Iran itself, making it a double-edged sword, Sachdeva added.

The price of oil could double: expert explains the threat of closing the Strait of Hormuz22.06.25, 18:59 • 89965 views

Meanwhile, Japan on Monday called for de-escalation of the conflict in Iran, while South Korea’s vice minister of industry expressed concern about the possible impact of the strikes on the country’s trade.