23.06.2025 06:05
West Texas Intermediate (WTI) crude oil prices surged over two percent in Asian trading on Monday, reaching approximately $75.50 per barrel. This upward movement followed a weekend of heightened geopolitical tension stemming from US airstrikes on three Iranian nuclear facilities. The price had earlier touched a five-month high of $76.74 before experiencing a slight pullback.
President Trump's announcement that the US had "obliterated" key Iranian nuclear sites—including Fordow, Natanz, and Isfahan—ignited concerns about potential disruptions to global oil supplies. These strikes, reportedly coordinated with an Israeli assault, have dramatically escalated tensions in the Middle East and prompted a strong reaction from Iran.
The threat of Iranian retaliation, particularly the potential closure of the Strait of Hormuz—a vital waterway for approximately 20% of global crude oil transport—is driving further price increases. While Iran's parliament has approved a measure to close the strait, past threats have not been carried out, according to reports from sources such as Reuters. However, the risk of damage to oil infrastructure is undeniably amplified, as noted by June Goh, senior analyst at Sparta Commodities, who highlighted the significant implications for global oil markets from internet sources.
Even with alternative pipeline routes available, restricting access to the Strait of Hormuz would inevitably curtail oil exports, leading to reduced shipping traffic in the region. The potential for significant supply shortages, coupled with the ongoing geopolitical uncertainty, is currently pushing WTI prices higher. The situation remains volatile, and analysts closely monitor the evolving developments in the Middle East for their impact on the global oil market.
