Oil prices jumped almost 25% on June 15, 2025, after Israeli airstrikes destroyed important energy infrastructure in Iran. The incident marked a sharp rise in tensions following the attacks on the Shahran oil depot and two natural gas processing facilities. Consequently, global oil prices surged dramatically.
U.S. crude oil jumped $2.72, or 3.7%, settling at $75.67 per barrel. This increase comes on the heels of last week’s historic 13% increase in U.S. crude oil prices. At the same time, the international standard Brent crude oil jumped by $3.67, or 4.94%, to settle at $77.90 per barrel. Analysts pointed out that it was the biggest single-day swing in the oil market since March 2022. This enormous realignment came at the same time as Russia’s invasion of Ukraine.
The Israeli strikes targeted the South Pars gas field in southern Iran, one of the largest natural gas fields globally. Unmanned aerial vehicles at the helm of the attacks, Iranian state media reported. These strikes severely damaged strategic gas processing infrastructure. As a result, fears of further disruptions to oil supplies have surged. That anxiety only deepened when Iranian military leaders threatened to close the strategic Strait of Hormuz.
In a reported retaliatory strike, Iranian forces today launched missiles against U.S. military bases in Iraq. They hit a key oil refinery in Haifa, Israel, as per The Times of Israel. The conflict, reportedly still active, is now in its third day. Both countries continued to launch missiles at each other over the weekend with efforts to de-escalate lacking on all sides.
The geopolitical landscape with respect to oil production and distribution is already precarious, as Israel and Iran have ramped up tensions recently. These airstrikes are a significant show of force against Iran’s nuclear and ballistic missile capability. They are in line with Israel’s wider military campaign efforts to eliminate Iran’s military command.
Yet, to market analysts this tidbit is doubly intriguing. They rightly fear a series of escalations that could spark even greater volatility in oil prices. These escalatory military actions are dangerous and serve no positive purpose to strengthen regional stability. Most importantly, they have outsized impacts on global energy markets.