- Brent crude briefly hit USD 81.40 on June 23 before settling near USD 77.50, its highest level since January.
- Prices surged after U.S. strikes on Iran and Tehran’s move to close the key oil shipping route, Strait of Hormuz.
- A full closure of the strait could push oil to USD 120; Goldman Sachs forecasts a temporary spike to USD 110.
Oil Prices
Today on Monday 23rd of June 2025, oil prices jumped to their highest since January.
Brent crude jumped to USD 81.40 before settling at around USD 77.50 as of 10:24 AM (GMT+3) on June 23rd 2025.
This comes after the US attacked Iran’s nuclear facilities in a move that escalated geopolitical tensions. Additionally, the Iranian parliament approved a measure to close the Strait of Hormuz. 20% of global oil and 20% of LNG shipments flow through the strait making it critical to global energy supply.
Even though there are alternative pipeline routes out of the region, there will still be a crude volume that cannot fully be exported if the strait becomes inaccessible.
Strait of Hormuz
Analysts predict that the closure of the Strait of Hormuz could push oil prices up to USD 120 per barrel. Meanwhile, Goldman Sachs predicts that Brent could briefly peak at USD 110 per barrel if oil flows through the strait were halved for a month.
Iran is the third-largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC). It extracts about 3.3 million barrels per day (bpd) of crude oil and another 1.3 million bpd of condensate and other liquids.
Any disruption to the Strait could increase shipping insurance, delay delivery times, and increase global supply chain challenges. It could also mean a rise in the price of goods if production and transportation becomes more expensive.
The mere possibility of a shutdown in the Strait of Hormuz has already rattled the energy market.
If you see something out of place or would like to contribute to this story, check out our Ethics and Policy section.
