Oil prices surged this morning (Wednesday) by over 1%, following reports that Israel is preparing for a potential strike on Iran’s nuclear facilities. According to CNN, U.S. intelligence indicates that operational preparations are underway, even though Israel’s defense establishment has yet to make a final decision.
Brent crude futures rose by 68 cents to $66.06 per barrel, while U.S. West Texas Intermediate (WTI) crude climbed by 70 cents to $62.73. Analysts stress that the report alone was enough to spark a chain reaction in the markets — and the message is clear: the world is taking the Israeli threat seriously.
Iran’s expected response to a strike
Iran, one of the leading members of OPEC, may respond to an Israeli strike by blocking the Strait of Hormuz — a key maritime passage through which a large portion of the world’s crude oil supply is transported. Such a move could seriously disrupt the global supply chain.
Meanwhile, the United States reported an increase of 2.5 million barrels in crude oil inventories, along with a decrease in gasoline and distillate stocks. Kazakhstan, for its part, raised its oil output by 2% in May, in defiance of OPEC+ policy — further adding to market volatility.
In addition, nuclear talks between Washington and Tehran remain have stalled. Iran’s Supreme Leader, Ayatollah Ali Khamenei, is taking a more hardline stance, while U.S. President Donald Trump refuses to ease sanctions. Markets assess that a deal is still far off — and the growing security tensions in the Middle East are clearly being felt in the energy sector.
