Oil Prices Surge as Israel Strikes Iran – Geopolitical Tensions Shake Energy Markets

Crude oil prices skyrocketed on Friday, June 13, as Israeli airstrikes targeted key Iranian military and nuclear installations, intensifying fears of a wider Middle East conflict and major supply disruptions. West Texas Intermediate (WTI) crude spiked nearly 10%, hitting an intraday high of $74.615, its strongest level in four months, before easing to $71.905, still up 6.74% on the day.

📈 Market Movers: What Triggered the Oil Rally?

The sudden escalation follows Israeli strikes on Iran’s nuclear facilities, missile production centers, and senior military leadership. Gold prices also rallied, reflecting a sharp risk-off sentiment across global markets.

Crude oil surged from $67.595 to $74.615, as traders priced in potential damage to oil infrastructure and the risk of escalating retaliation.

“Iran will respond harshly against both Israel and the United States,” Tehran officials warned, raising the specter of broader regional conflict.

🔥 Could Oil Hit $80?

Analysts see the potential for WTI to break above $79.355, especially if Iran retaliates militarily. Westpac strategist Robert Rennie noted that while this appears to be a “pre-emptive” strike with limited U.S. involvement, any retaliation from Iran could push oil well beyond recent highs.

In October 2024, oil touched $78.766 following similar Israeli actions, setting a key benchmark level for traders.

🛰️ Global Impact: Markets on Edge

The U.S. has already evacuated embassy staff in Iraq and increased security around its regional assets. Meanwhile, tensions in the Middle East coincide with a temporary de-escalation in U.S.-China trade relations, but geopolitical uncertainty remains high.

If Iran’s response targets oil transport routes or critical energy infrastructure, especially in the Strait of Hormuz, the price rally could gain further traction.

“Traders are laser-focused on how Iran responds,” Rennie added, warning that proxy attacks could heighten volatility into the weekend.

🛢️ Oil Price Forecast: Volatility Ahead

• Immediate Resistance: $74.60 and $79.35
• Support Levels: $71.00 and $67.50
• Short-Term Outlook: Bullish bias on geopolitical escalation
• Long-Term View: Westpac still sees Q3 oil prices retesting the $60–$65 range, with potential dips below $60 in Q4 if global demand softens.

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