June 13 (Reuters) – Oil prices jumped almost 7% on Friday to multi-month highs after Israel launched strikes against Iran, sparking Iranian retaliation and raising worries about a disruption in Middle East oil supplies.
Friday’s gains were the largest intraday moves for both contracts since 2022, after Russia’s invasion of Ukraine caused a spike in energy prices.
The National Iranian Oil Refining and Distribution Company said oil refining and storage facilities had not been damaged and continued to operate.
About a fifth of the world’s total oil consumption passes through the strait, or some 18 to 19 million barrels per day (bpd) of oil, condensate and fuel.
Goldman Sachs in a note on Friday said while it has incorporated a higher geopolitical risk premium into its adjusted summer 2025 oil price outlook, it continues to assume no disruptions to Middle East oil supply after Israel’s attacks on Iran.
June 13 (Reuters) – Following Israel’s strikes against Iran, which sparked Iranian retaliation and heightened concerns about a disruption in Middle Eastern oil supplies, oil prices surged nearly 7% on Friday to multi-month highs.
At 1352 GMT, Brent crude futures were up $4.57, or roughly 6.59 percent, to $73.93 a barrel, following an intraday high of $78.50, the highest since January 27.
U. S. Earlier in the day, West Texas Intermediate crude hit its highest level since January 21 at $77.62, up $4.53, or 6.66 percent, at $72.57.
The gains on Friday were the biggest intraday movements for both contracts since 2022, when energy prices spiked due to Russia’s invasion of Ukraine.
Israel said Friday that it had launched a protracted operation to stop Tehran from developing an atomic weapon, targeting Iran’s nuclear facilities, ballistic missile factories, and military leaders. Iran has pledged a severe reaction.
U. A. President Donald Trump called on Iran to reach a nuclear agreement in order to stop the “next already planned attacks.”. “.
According to the National Iranian Oil Refining and Distribution Company, oil storage and refining facilities remained intact and were still in operation.
According to SEB analyst Ole Hvalbye, the main worry was how the most recent events would impact the Strait of Hormuz. Hvalbye stated that although the important waterway had previously been vulnerable to the effects of heightened regional volatility, it had not yet been impacted.
Approximately 18 to 19 million barrels of oil, condensate, and fuel per day (bpd), or one-fifth of the world’s total oil consumption, flow through the strait.
Additionally, he said, there was no effect on the region’s oil flow.
“Unless Iran chooses to cause trouble for other countries, particularly the United States, no energy installations have been affected by the Israeli strikes. S. . supply disruption risk is still minimal going into the conflict, which should eventually lower the risk premium, according to Ole Hansen, an analyst at Saxo Bank.
Although it has added a higher geopolitical risk premium to its revised summer 2025 oil price outlook, Goldman Sachs said in a note on Friday that it still believes the Middle East’s oil supply won’t be disrupted following Israel’s attacks on Iran.
“Our signal is that there is a lower probability of a full-blown war, and the oil price rally will likely encounter resistance,” said Janiv Shah, an analyst at Rystad. “The key question now is whether this oil rally will last longer than the weekend or a week,” Shah said.
Fundamentals indicate that almost all Iranian exports go to China, so this is where Chinese discounted purchases would be most vulnerable. The stabilizing force can be supplied by OPEC+ spare capacity,” he continued.
A rush to safe havens like gold and the Swiss franc occurred as stocks fell in other markets.
Stephen Coates, Rachna Uppal, Kim Coghill, and Chizu Nomiyama edited the stories, which were reported by Florence Tan in Singapore and Seher Dareen and Robert Harvey in London.
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Seher keeps an eye on noteworthy developments in the resources sector and works around the clock to supervise and write market reports with the Bangalore commodities and energy team.
