Global oil prices surged on Tuesday as rising tensions between Israel and Iran stoked fears of a broader Middle East conflict, potentially disrupting critical oil supply routes.
Brent crude spiked by 2.2% before settling just above $73 a barrel, while West Texas Intermediate (WTI) hovered near $72. The gains followed U.S. President Donald Trump&rsquo;s call for the evacuation of Tehran, intensifying concerns of an expanded regional war.
Though prices eased slightly later in the day, markets remained volatile. The spike came after earlier dips on Monday, when signs suggested Iran might de-escalate. However, renewed Israeli airstrikes targeting Iranian nuclear infrastructure reversed that optimism.
All eyes are now on the Strait of Hormuz &mdash; a strategic chokepoint for global oil trade, where nearly 20% of the world's daily oil supply transits. Reports from maritime security firm Ambrey hinted at a possible incident near the area, adding to market anxiety.
Navigation disruptions and rising risks have prompted many shipping companies to avoid the region. The UK Navy reported difficulties with vessel GPS signals across the Strait and Persian Gulf.
Despite no reported damage to Iran&rsquo;s oil export infrastructure, traders and producers are heavily hedging oil futures, and investment banks like Morgan Stanley have revised their price forecasts upward.
Amid the turmoil, the White House is reportedly considering diplomatic talks with Iran aimed at reviving the nuclear deal. Meanwhile, Israel claims it has damaged major Iranian missile and nuclear facilities and gained control over parts of Iran's airspace, fuelling fears of a full-scale war.
The Middle East currently accounts for almost one-third of global oil production, making any conflict in the region a high-stakes situation for the global economy.
[Except for the headline, this article has not been edited by the Benefit News editorial team and is published directly from the IANS news feed.]
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Oil Prices Climb Amid Escalating Israel-Iran Conflict

Brent, WTI rise as Middle East tensions threaten oil trade; markets eye Strait of Hormuz closely.

Oil Prices Climb Amid Escalating Israel-Iran Conflict

Brent, WTI rise as Middle East tensions threaten oil trade; markets eye Strait of Hormuz closely.

June 17, 2025 | 12:54 IST