Oil Prices Surge To $74 Per Barrel Amid Israel-Iran Tensions.
Global oil prices soared to a four-month high of $74 per barrel on Friday, 13 June, following Israel’s military strikes on Iranian nuclear and military targets, raising fears of potential disruptions to Middle Eastern oil supplies. The 7% spike in Brent crude, the international benchmark, from $69 to $74.23 per barrel, marked the largest single-day gain since Russia’s invasion of Ukraine in March 2022, while US West Texas Intermediate (WTI) crude rose 7.6% to $72.98 per barrel.
The escalation began early Friday when Israel launched a series of airstrikes targeting Iran’s nuclear facilities, ballistic missile factories, and senior military commanders, in what it described as a prolonged operation to prevent Tehran from developing nuclear weapons. Iran retaliated with over 100 drones and later launched ballistic missiles towards Israel, though Israeli defences intercepted most of the attacks. The National Iranian Oil Refining and Distribution Company confirmed that its oil infrastructure remained undamaged, easing some immediate concerns about supply disruptions.
The price surge reflects heightened market anxiety over the potential for a broader conflict in the oil-rich Middle East, particularly the risk of Iran blocking the Strait of Hormuz, through which about a fifth of the world’s oil—roughly 18 to 19 million barrels per day—passes. Analysts at Capital Economics warned that targeting Iran’s oil production or export facilities could push Brent crude to $80-$100 per barrel, though they noted that spare capacity among OPEC+ members, including Saudi Arabia and Russia, could offset disruptions equivalent to Iran’s 3.3 million bpd output.
Despite the sharp rise, oil prices remain more than 10% lower than last year and well below the $100-plus peaks seen in 2022. Rod Dennis, a spokesman for the UK’s RAC, cautioned that it was “too soon” to predict the impact on petrol prices, stating, “Sustained higher wholesale fuel prices and retailer margins will be key factors.” Posts on X reflected market jitters, with some users noting Brent futures briefly hitting $75 per barrel as traders braced for further Iranian retaliation.
The UK government, alongside international allies, has urged restraint to prevent further escalation. Prime Minister Sir Keir Starmer reiterated calls for de-escalation, while US President Donald Trump urged Iran to negotiate over its nuclear programme to avert additional strikes. OPEC’s secretary general dismissed suggestions of releasing emergency stockpiles, asserting that current market dynamics do not warrant such measures.
Analysts remain cautiously optimistic that increased output from other oil producers could mitigate price spikes if the conflict is contained. However, the situation remains fluid, with the potential for significant economic impacts if tensions persist. For now, global markets are on edge, awaiting Iran’s next moves and their implications for the world’s energy supply.