Friday, June 14, 2025, prices Oil went up by 7% after a series of air strikes between Israel and Iran. Investors fearIt is believed that the conflict can seriously disrupt the supply of oil from the mediate East, which will affect the global economy.
The dramatic emergence in oil prices
Brent oil contracts have closed at the level $74.23 per barrel, which means an increase by 7.22%. American WTI oil (West Texas Intermediate) increased by 7.62%achieving $72.98 per barrel. During the WTI ratings session increased even by 14%, reaching the highest level since January 2025.
This is the biggest price fluctuations since the Russian invasion of Ukraine in 2022, erstwhile the planet experienced an energy shock.
Iran and Israel in the heat of conflict. How will this affect the oil market?
Iran, a associate of OPEC, presently produces 3.3 million barrels of oil per day, exporting above 2 million barrels. Although Iran's refineries have not been damaged, analysts inform against possible disturbances in Ormuz Strait – a key transport way for global oil trade.
- Around 18–19 million barrels of oil per day flow through the Ormuz Strait (20% of global consumption).
- Saudi Arabia, Kuwait, Iraq and Iran are dependent on this route – as Rabobank notes.
Ben Hoff of Societe Generale warns:
"If Israel attacks Iran's oil infrastructure, Tehran can answer in the same way. This threatens with a spiral of retaliation that will destabilise the market.”
Iran is threatening to retaliate. Will the UN react?
After the Israeli attack on Iran's military and atomic targets, Minister of abroad Affairs Abbas Aragchi He accused Israel of "declaring war" and demanded the intervention of the UN safety Council.
- Iran announced no restrictions in responseWhich could mean further escalation.
- The U.S. supports Israel in defence of Iranian missileswhich further exacerbates the situation.
Is the planet in danger of a fuel crisis?
JP Morgan analysts indicate Iran cannot afford to block the Strait of OrmuzBecause its economy is dependent on oil exports, mainly to China. However, any escalation of the conflict can origin panic in the markets and further price increases.
Summary
The escalation of the Israeli-Iran conflict has put the planet before another energy crisis. If the battles decision to oil infrastructure or key transport routes, fuel prices may even go up further.
Are we witnessing the beginning of a fresh oil crisis?
More here:
Oil rapidly costs after the escalation of the Israel-Iran conflict
