Oil Prices Spike to Highest Since January After U.S. Strikes on Iran’s Nuclear Sites
Oil prices surged on Monday, reaching their highest levels in five months, as the U.S. joined Israel in airstrikes on Iran’s nuclear facilities, fueling concerns over potential supply disruptions.
As of 0806 GMT, Brent crude rose 72 cents (0.93%) to $77.73 per barrel, while U.S. West Texas Intermediate (WTI) climbed 71 cents (0.96%) to $74.55.
Earlier in the session, both benchmarks had jumped over 3%, with Brent peaking at $81.40 and WTI hitting $78.40, before retreating slightly.
The rally followed President Donald Trump’s declaration that U.S. strikes had “obliterated” Iran’s primary nuclear sites over the weekend—a move that intensified Middle East tensions as Iran vowed retaliation.
As the third-largest crude producer in OPEC, Iran plays a major role in global oil supply. Investors now fear that Tehran may respond by disrupting traffic through the Strait of Hormuz, a strategic waterway that handles around 20% of global crude shipments.
“Geopolitical tensions are pushing Brent higher, potentially toward $100 or even $120 per barrel,” said Sugandha Sachdeva, founder of India-based SS WealthStreet.
On Monday, Iran stated that the U.S. attack had widened the scope of “legitimate targets” for its armed forces and labeled President Trump a “gambler” for entering the conflict on Israel’s side.
“The risk of damage to critical oil infrastructure has significantly increased,” warned June Goh, senior analyst at Sparta Commodities.
While there are alternative pipeline routes in the region, a blockage of the Strait of Hormuz would still prevent a significant volume of crude from being exported, she noted. As a result, shipping traffic could avoid the region, further tightening supply.
In a note on Sunday, Goldman Sachs estimated that Brent could briefly reach $110 per barrel if oil flows through the strait were halved for a month, though the bank currently assumes no major long-term disruptions.
Brent has climbed 13% and WTI 10% since hostilities escalated on June 13.
Sachdeva added that any prolonged closure of the Strait would also harm Iran, as it depends on the same route for its oil exports—its primary source of revenue—making the move a double-edged sword.
