Israel's attack on Iran raises the price of oil and causes Asian stock markets to fall

Published at: 12/06/2025 09:46 PM

The tension in the Middle East caused by Israel's attack on Iran generated immediate movements in international oil prices, which rose more than 6% in the early hours of Friday.

The main US oil contract, the West Texas Intermediate (WTI), increased its price by 6.3%, reaching $72.29 per barrel, its highest price since last February. In addition, Brent crude oil, a benchmark in Europe, rose 8% to $75 per barrel.

Persistent tension with Iran means that its supply of crude oil is likely to remain restricted by sanctions.

According to Arne Rasmussen, Global Risk Management analyst at LinkedIn: “For the oil market, the absolute nightmare is the closure of the Strait of Hormuz.” “If Iran blocks this point, it could affect up to 20% of global oil flows,” he added.

JP Morgan, for his part, asserted that oil prices could rise to $120-130 a barrel if the strait were closed, something he defined as serious but low risk.

Asian markets reacted downward to Israel's attack on Iran. The Nikkei 225, the most popular stock market index in the Japanese market, opened 1.56% in the early hours of Friday, June 13.

The Hong Kong stock market (Hang Seng) started the day with a decline of 0.32%, while the S&P/ASX 200 (Sydney, Australia) contracted 0.43% in the early hours of the day.

The Shanghai Stock Exchange (SSE Composite Index), one of China's leading stock exchanges, began the day with a 0.10% decline in the average value of securities traded.

Mazo News Team