Crude oil prices rise sharply as Israel strikes Iran

Oil prices soared, up by more than seven percent on the day following Israel’s strike on Iran, increasing fears of supply disruptions in the oil-rich region. The market reacted to unexpected Israeli attack on Iranian targets, hence the price of Brent crude surged 7.4%, reaching $74.49 a barrel, up from $69.65 at the previous session’s close. At the same time, the price of West Texas Intermediate (WTI) crude also climbed sharply, rising 7.86% to $73.39 a barrel. Oil prices surged, hitting their highest in almost five months after the unilateral attacks, dramatically escalating tensions in the Middle East and raising worries about disrupted oil supplies.
International benchmark Brent crude increased by around 5.6%, trading at $73.59 per barrel, up from $69.65 at the previous session’s close. Similarly, US benchmark West Texas Intermediate (WTI) increased by about 6.03%, settling at $71.63 per barrel, compared to $67.55 in the prior session.
The latest surge in tensions comes as diplomatic efforts between Washington and Tehran over Iran’s nuclear program appear to have stalled. According to US and Iranian officials, as well as Omani mediators, both sides were expected to meet in Muscat on Sunday for a sixth round of talks focused on Tehran’s expanding uranium enrichment activities. Iranian state television reported that Israel had struck nuclear facilities in Natanz, as well as Tehran, Tabriz, and several locations in Kermanshah, and accused Israel of violating Iran’s territorial integrity and national sovereignty.
Tehran also pointed the finger at Washington, stating such an attack could not have taken place without US coordination and approval. The Iranian Foreign Ministry issued a statement holding the US equally responsible for the consequences of the Israeli strikes. Meanwhile, Israeli Defence Minister Yisrael Katz confirmed the operation, and Israeli military radio reported that a nationwide state of emergency had been declared. The escalation heightened concerns in financial markets already grappling with global economic pressure, driven in part by what many see as erratic and aggressive trade policies under US President Donald Trump.
US Secretary of State Marco Rubio on Thursday called Israel’s strikes against Iran a “unilateral action” and stated Washington was not involved while also urging Tehran not to target U.S. interests or personnel in the region. At the same time, on June 12, US officials revealed plans to evacuate non-essential staff from the American embassy in Baghdad, citing regional instability. Similar moves are reportedly being considered for personnel in Bahrain and Kuwait. The US Department of Defense is said to be preparing to assist with a possible evacuation from Baghdad.