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Global Oil prices surge after Iran threatens to close Strait of Hormuz
Jun 23, 2025Global oil prices soared to a five-month high on Monday following a dramatic escalation in tensions between the United States and Iran. The spike comes in the wake of U.S. airstrikes on Iranian nuclear facilities and Iran’s subsequent proposal to close the Strait of Hormuz — a critical maritime chokepoint for global oil and gas shipments.
The price of Brent Crude, the international benchmark, rose by more than 2%, briefly climbing as high as 5% before paring gains. It was trading above $79 per barrel, marking its highest level since January. Meanwhile, U.S. West Texas Intermediate (WTI) crude traded near $75 per barrel, also up over 2%.
This marks the third consecutive week of gains for crude oil, as rising geopolitical tensions continue to fuel concerns over potential supply disruptions.
The Strait of Hormuz, situated between the Persian Gulf and the Gulf of Oman, is one of the most strategically important waterways in the world. Approximately 20% of the world’s oil supply — and a significant portion of global liquefied natural gas (LNG) shipments — pass through the narrow strait. A closure or even limited disruption could have severe consequences for the global economy, driving up fuel prices and increasing inflationary pressure worldwide.
Market analysts warn that further escalation could push oil prices even higher, with some predicting levels above $90 per barrel if shipping through the strait is halted for an extended period.
Governments and energy markets are now closely monitoring the situation, as any prolonged disruption to the Strait of Hormuz could trigger a ripple effect across global supply chains, particularly impacting major energy importers in Asia and Europe.
As tensions continue to mount, energy security and diplomatic efforts to de-escalate the crisis have become top priorities for world leaders.
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