Oil prices spiked sharply on Monday as geopolitical tensions flared in the Middle East following an Israeli strike on Iran&rsquo;s South Pars gas field. Brent crude rose by as much as 5.5% before easing to around $75 a barrel.
The Israeli action disrupted a major production platform, sparking concerns of supply shocks. While experts say another major price surge is unlikely unless the Strait of Hormuz is threatened or Iran-backed Houthis attack key shipping routes, anxiety remains high.
Norbert Rucker of Julius Baer noted that oil acts as a &ldquo;fever measure&rdquo; of such crises. &ldquo;We expect the usual pattern&mdash;prices rise temporarily before returning to normal levels. The oil market today is resilient, and supply risks are low,&rdquo; he said.
Historically, geopolitical price spikes have averaged less than 20% and lasted up to three months, depending on the severity of the conflict.
Amid rising hostilities, Iran warned it could retaliate against US bases in the region. The US has already begun withdrawing personnel from Iraq.
Emkay Global reports Iran produces 3.3 million barrels/day (3% of global output), exporting half, mainly to China and Turkey. With the strategic Strait of Hormuz handling over 20 million barrels of oil daily, any escalation involving Saudi Arabia, Iraq, Kuwait, or the UAE could cause a dramatic surge in oil prices.
[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 Surge Amid Rising Israel-Iran Tensions

Brent rises 5.5% after Israel hits Iran gas field; fears grow over Strait of Hormuz disruption

Oil Prices Surge Amid Rising Israel-Iran Tensions

Brent rises 5.5% after Israel hits Iran gas field; fears grow over Strait of Hormuz disruption

June 16, 2025 | 10:34 IST