Oil soars more than 9% after Israel strikes Iran, rattling investors

Oil prices surge after Israel strikes Iran, escalating Middle East tensions, raising concerns about disrupted oil supplies.

Oil prices surged more than 9% on Friday (June 13, 2025), hitting their highest in almost five months after Israel struck Iran, dramatically escalating tensions in the Middle East and raising worries about disrupted oil supplies.

Brent crude futures jumped $6.29, or 9.07%, to $75.65 a barrel by 0315 GMT after hitting an intraday high of $78.50, the highest since January 27. U.S. West Texas Intermediate crude was up $6.43, or 9.45%, at $74.47 a barrel after hitting a high of $77.62, the loftiest since January 21.

Israel strikes Iran LIVE: Military official says nuclear targets hit; explosions heard across Tehran

Friday's gains were the largest intraday moves for both contracts since 2022 after Russia invaded Ukraine, causing energy prices to spike.

Israel said it targeted Iran's nuclear facilities, ballistic missile factories and military commanders on Friday at the start of what it warned would be a prolonged operation to prevent Tehran from building an atomic weapon.

"This has elevated geopolitical uncertainty significantly and requires the oil market to price in a larger risk premium for any potential supply disruptions," ING analysts led by Warren Patterson said in a note.

Several oil traders in Singapore said it was still too early to say if the strike will affect Middle East oil shipments as it will depend on how Iran retaliates and if the U.S. will intervene.