How is the Israeli-Iran struggle expected to increase global oil prices?

Updated: 23-06-2025, 10.55 PM

What is news?

The United States launched an aerial attack on 3 nuclear sites in Iran, leading to the Israeli-Iran struggle and serious. US President Donald Trump clearly stated that Iran either make peace or face destruction. After this attack, concern has increased all over the world how Iran will now respond. Even before this, tension has started to feel stress in global markets and there is a possibility of increasing oil prices.

supply

Oil supplies hovering threatened

In the midst of this struggle, Iran has spoken of shutting down the Hormuz Strait. This route is the most important way to carry oil from the Middle East. About a quarter of oil in the world passes here. If this route is closed, the oil supply will decrease and prices may increase rapidly. Investors and countries fear that shipping will be interrupted and prices will bounce.

Analysis

What does JP Morgan’s analysis say?

JP Morgan said in his report that oil prices can go up to $ 120 per barrel. Right now the oil is around $ 78, but if the struggle increases, it can go up considerably. The report said that at present, only 7 percent of the worst conditions in the markets are feared, but this number may increase at any time if the situation is out of control.

India’s preparation and Puri’s statement

Oil Minister Hardeep Puri said that India has maintained many sources of oil supply. Out of the consumption of about 55 lakh barrels of oil, 40 lakh barrels of India are called through other routes. He said that when the markets open tomorrow, the impact of American attacks will be seen on oil prices. However, he also said that there is enough oil in global markets and suppliers are interested in continuing business.

Possible governance change and further impact

Experts believe that if there is a change of governance in Iran, then it can show a major impact from the Libya crisis. Iran is the third largest oil producing country in OPEC. If the oil supply is stopped from there, then the world can get 3 million barrels less every day. This can lead to a big bounce in oil prices and also have a profound impact on the global economy.