Oil Prices Jump 7% Amid Israel-Iran Tensions Risking Supply

Oil prices jumped sharply on Friday, 13th June, as tensions between Israel and Iran escalated in the Middle East. Traders fear that the conflict could disrupt oil production and transportation in the region.

The Brent crude oil for August delivery rose by 7.02%, reaching $74.23 per barrel. During the day, prices briefly spiked more than 13%, hitting $78.50 — the highest since January.

Meanwhile, the US West Texas Intermediate (WTI) for July delivery increased by 7.26% to $72.98, after climbing to $77.62 earlier, also its highest since January.

The Israeli military confirmed it was continuing airstrikes against Iran “at full strength” following a large attack on Iranian military and nuclear sites that killed top Iranian officials.

Iran claimed Israel “declared war” and responded by shooting down two Israeli military aircraft and firing missiles toward Israel.

Experts express concern that the conflict could deepen and cause oil supply disruptions. About one-third of the world’s oil comes from the Middle East, raising fears of wider impacts.

Currently, Iran says no oil facilities have been hit, but analysts warn Iran might target oil tankers transporting crude to the US.

Iran is the world’s ninth-largest oil producer, with roughly 3.3 million barrels per day. However, its strategic importance lies more in its geography than its output.

The country borders the Strait of Hormuz, through which around 20 million barrels of oil are shipped daily.

Blocking this strait could cause global oil prices to spike dramatically, some analysts warn.

According to Arne Lohmann Rasmussen of Global Risk Management, a blockage would be a “nightmare” for oil markets.

If significant disruptions occurred, prices could soar to $120 per barrel. Oil-exporting countries in OPEC have limited spare capacity, mostly located in the Persian Gulf, which would not be enough to stabilize the market in such a scenario.

Source: Defi Media