15.06.2025 23:09
Oil futures experienced a dramatic surge of 6% on Sunday night, following Israel's drone attacks on Iranian natural gas facilities. This aggressive military action sent ripples of shock through global financial markets, triggering a sharp decline in risk assets.
Reports from Iranian state media, corroborated by The Jerusalem Post, detailed the strikes on two key South Pars gas facilities, carried out by Israeli unmanned aerial vehicles on Saturday. A further attack reportedly targeted an oil depot near Tehran. These actions, coming just two days after Israeli air raids on Iranian military and nuclear installations, fueled escalating fears of a wider conflict impacting crucial energy infrastructure and supply chains.
The attacks resulted in a significant price jump for US crude oil, soaring $2.72 (a 3.7% increase) to close at $75.67 per barrel. Global benchmark Brent crude mirrored this trend, rising $3.67 (a 4.94% increase) to settle at $77.90. This dramatic rally followed a substantial 7% surge on Friday, representing the oil market's most volatile period since the start of the Russia-Ukraine war in 2022. The combined effect of these price swings resulted in a staggering 13% increase in US crude prices over the course of just one week.
The escalation didn't end with Israel's offensive. Iranian missile strikes on a major refinery in Haifa, as reported by The Times of Israel, further exacerbated concerns about global oil supply stability. With tensions remaining critically high on the third day of renewed conflict, and neither side showing signs of de-escalation, the situation remains precarious. Adding fuel to the fire, a senior Iranian commander issued a stark warning, threatening the closure of the Strait of Hormuz, a vital waterway responsible for transporting over 20% of the world's oil exports. Such an action would undoubtedly cause widespread disruption to international energy logistics.
The increased geopolitical uncertainty immediately impacted global stock markets. Upon opening, Dow Jones Industrial Average futures plummeted 92 points (0.2%), while S&P 500 and Nasdaq 100 futures also experienced a 0.2% decline. This downturn followed a severely negative Friday trading session, which witnessed the Dow Jones Industrial Average plunge over 700 points.
