Oil Prices Spike Amid Ongoing Iran Conflict
Oil prices surged late Sunday as the conflict in Iran continued to escalate, raising worries about potential disruptions in global energy markets.
Reports indicated that Brent crude oil reached a peak of $82.37 a barrel, marking the highest level since January 2025, shortly after the U.S. and Israeli forces conducted an attack in Iran that resulted in the death of Supreme Leader Ali Khamenei. By 7:54 p.m. ET, Brent had slightly decreased but remained over 7% higher at $78.24 per barrel.
Additionally, U.S. West Texas Intermediate crude oil saw an increase of nearly 7%, hitting $75.33 before settling back to around $71.68. This is notable as it’s the highest price seen since last June.
Citi analysts expressed concerns that prices might rise further if the situation drags on, predicting that Brent crude could fluctuate between $80 and $90 a barrel in the coming days.
On Sunday, Israel launched a fresh attack on Iran, which was met by a missile response from Tehran, heightening the already tense atmosphere in a region that plays a significant role in global oil production.
Missiles also reportedly struck oil tankers near the crucial Strait of Hormuz, a vital export route, resulting in the death of one crew member and alarming international markets. More than 200 ships, including oil and liquefied natural gas tankers, were anchored near the area, which handles about 20% of the world’s oil supplies.
In light of this ongoing unrest, Iran has been taking steps to limit navigation through the Strait of Hormuz, a route central to the economies of major exporting nations such as Saudi Arabia, Iraq, the United Arab Emirates, Kuwait, and Iran itself.
