Oil prices rise as Israel-Iran conflict escalates

Oil prices increased on Monday, June 16, 2025, as renewed strikes by Israel and Iran over the weekend increased concerns that the battle could widen across the region and significantly disrupt oil exports from the Middle East.

Brent crude futures were up 6 cents, or 0.08%, to $74.29 a barrel by 0742 GMT, while U.S. West Texas Intermediate crude futures gained 21 cents or 0.29%, to $73.19.

They had surged more than $4 a barrel earlier in the session and also fell into negative territory briefly.

Both benchmarks settled 7% higher on Friday, having jumped more than 13% during the session to their highest levels since January.

Iranian missiles struck Israel’s Tel Aviv and the port city of Haifa on Monday, destroying homes and fuelling concerns among world leaders at this week’s G7 meeting that the battle between the two old enemies could lead to a broader regional conflict.

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An exchange of strikes between Israel and Iran on Sunday resulted in civilian casualties, with both militaries urging civilians on the opposing side to take precautions against further strikes, Reuters reported.

The latest developments have stoked concerns about disruptions to the Strait of Hormuz, a vital shipping passage.

About a fifth of the world’s total oil consumption, or some 18 to 19 million barrels per day (bpd) of oil, condensate and fuel, passes through the strait.

Iran, a member of the Organization of the Petroleum Exporting Countries (OPEC), currently produces around 3.3 million bpd and exports more than 2 million bpd of oil and fuel.

Meanwhile, Iran has told mediators Qatar and Oman that it is not open to negotiating a ceasefire while under Israeli attack.

The Star