Daijiworld Media Network – New York
New York, Jun 23: Oil prices spiked in early Monday trading following US air strikes on Iran’s key nuclear facilities, triggering fears of major disruptions in global energy supply and a broader conflict in the Gulf region.
Global benchmark Brent crude and US West Texas Intermediate (WTI) both jumped over 4% in the opening hours, hitting their highest levels since January, before easing slightly. As of 0030 GMT, Brent was trading at $79.20 per barrel (up 2.2%) and WTI at $75.98 (up 2.1%).
The strike, described by US Defense Secretary Pete Hegseth as having "devastated the Iranian nuclear programme", has raised alarm bells across Asia, where major economies rely heavily on energy imports. Iran, the world’s ninth-largest oil producer, pumps around 3.3 million barrels a day — nearly half of which is exported. Any disruption from Tehran could deeply unsettle energy markets.
The biggest flashpoint is the Strait of Hormuz — a narrow passage through which nearly 20% of the world’s oil supply flows. Observers warn that if Iran retaliates by attempting to block the waterway, it could unleash a global oil shock.
Economists at MUFG noted the “high uncertainty of the outcomes and duration of this war,” warning that even a $10 rise in crude prices would carry negative implications for most Asian economies.
Reflecting those fears, Asia’s financial markets opened weak. Japan’s Nikkei index slipped 0.6%, South Korea’s Kospi dropped 1.4%, and Australia’s ASX 200 shed 0.7%.
Pepperstone analyst Chris Weston said Iran doesn’t necessarily need to shut down the Strait to cause chaos. “Just planting enough belief that they could disrupt this key logistical channel could push up maritime costs and severely affect crude and gas supply chains,” he noted.
While Washington insists it is not seeking a broader war, Tehran’s threats to target US bases in the Middle East have elevated regional tensions. With markets already on edge, analysts warn that trade-related headlines and continued geopolitical uncertainty could further fuel global volatility in the days ahead.