23.06.2025 03:56
Following alleged US airstrikes on Iranian nuclear facilities, oil prices are projected to surge beyond $110 per barrel. Iran's vow of "severe consequences" has heightened global anxieties, escalating the already volatile conflict between Iran and Israel. This escalation significantly threatens global oil markets and the broader economy, according to analysts cited by various internet sources.
The situation has been further inflamed by Iran's foreign minister asserting that all options remain open to defend national sovereignty. Early Asian trading saw a substantial price increase; US West Texas Intermediate (WTI) crude climbed over 2% to $75.22 per barrel, while Brent crude, the global benchmark, rose nearly 2% to $78.53. This price jump is largely attributed to Iran's threat to close the Strait of Hormuz, a critical waterway for global oil transport.
Tehran's recent approval of a proposal to close the Strait of Hormuz, responsible for transporting almost 20% of the world's oil supply, has ignited widespread panic. Industry experts, drawing from a week of missile exchanges and the direct US involvement, believe this situation is unprecedented. The potential for Iranian military retaliation, even limited harassment of shipping in the strait, could drastically increase oil prices, analysts warn. Even minor disruptions to tanker traffic could drive prices towards $100 per barrel, one energy analyst from MST Marquee predicted. A sustained closure, however, lasting several weeks, would likely prompt a Western military intervention to restore the strait's functionality.
The most significant risk, however, lies in the potential for a protracted conflict. A prolonged disruption to oil supply is the most concerning possibility. Experts concur that Iran's potential military response could extend beyond naval threats, potentially targeting energy infrastructure in the Gulf region, including LNG and oil facilities. Such actions could trigger an even more dramatic escalation in oil prices, exceeding even the already alarming projections.
