Why Did Oil Prices Jump So High After Strikes in the Middle East?

Intermediate | June 14, 2025

✨ 혼자서 기사를 소리 내어 읽거나 튜터를 따라 각 단락을 반복해서 읽으세요. 레벨...

Geopolitical Tension Heats Up Oil Market

The Oil Price Jump After Israel-Iran Strikes

Hey there! Let’s talk about something important happening in the world that’s affecting the price of oil, which can impact a lot of things we buy. On June 13, 2025, after Israel conducted military strikes in Iran, the price of oil suddenly went up by more than 7%! This oil price jump after Israel-Iran strikes is making headlines around the world.

Why Did Oil Prices Jump So Much?

Why such a big jump? Well, the Middle East is a super important region for global oil supply. When there’s conflict or tension there, people worry that the supply of oil might be interrupted or stopped. This worry makes traders buy more oil, driving the price up. The oil price jump after Israel-Iran strikes shows how quickly markets react to geopolitical risks.

Worries About Supply Routes

The Importance of the Strait of Hormuz

One major concern is the Strait of Hormuz. This is a narrow waterway near Iran that a huge amount of the world’s oil passes through on ships every day. If this route were blocked or became unsafe due to conflict, it would be very difficult to get oil to many parts of the world. This possibility really makes the market nervous.

Market Reactions to the News

Benchmark oil prices, like Brent crude and U.S. West Texas Intermediate (WTI), saw their biggest one-day increases since 2022, which was when the conflict in Ukraine started and also significantly impacted energy prices. Brent crude settled at around $74 a barrel after the jump.

Broader Economic Effects

Beyond oil, the fear caused stock markets in the U.S., Europe, and Asia to fall. Investors often look for safer places to put their money during uncertain times, like gold or certain currencies.

What Happens Next?

Experts are now watching closely to see what happens next. Will the situation escalate further? Will Iran try to affect oil shipments? Or will tensions calm down, allowing prices to settle? It’s a reminder that events far away can have a real impact on the global economy and even our daily lives.

Vocabulary

Strikes (noun): Military attacks, often by aircraft or missiles.
- Example: “The news reported several air “strikes” overnight.”
Tensions (noun): A situation in which there is conflict or disagreement between people or groups, making them likely to fight or argue.
- Example: “Political “tensions” in the region have been rising.”
Escalate (verb): To increase in intensity, seriousness, or magnitude.
- Example: “We hope the situation doesn’t “escalate” into a full-blown war.”
Disrupt (verb): To interrupt the normal course or activity of something.
- Example: “The protests might “disrupt” traffic in the city center.”
Supply (noun): The amount of something that is available for use.
- Example: “The “supply” of fresh water is limited in the desert.”
Region (noun): An area, especially part of a country or the world having definable characteristics but not always fixed boundaries.
- Example: “The Middle East “region” is important for oil.”
Waterway (noun): A river, canal, or other route for water transport.
- Example: “The Strait of Hormuz is a critical “waterway”.”
Benchmark (noun): A standard or point of reference against which things may be compared.
- Example: “Brent crude is a global “benchmark” for oil prices.”
Settle (verb): To become calm or stable.
- Example: “Hopefully, the prices will “settle” down soon.”
Geopolitical (adjective): Relating to politics, especially international relations, as influenced by geographical factors.
- Example: “”Geopolitical” events can significantly impact markets.”

Discussion Questions (About the Article)

According to the article, why did oil prices increase after the strikes?
What is the Strait of Hormuz and why is it mentioned in the article?
How did stock markets react to the news?
What are analysts worried about happening next?
When was the last time oil prices saw such a big one-day jump, according to the article?

Discussion Questions (About the Topic)

How do you think events in one part of the world can affect prices everywhere?
Why do you think oil is so important to the global economy?
What are some other factors, besides conflict, that can influence the price of oil?
How might rising oil prices affect your daily life or the economy in your country?
What alternatives to oil could reduce the impact of Middle East tensions on global energy markets?

Related Idiom

“On the boil”

Meaning: At an exciting or critical stage.
Example: The situation in the Middle East is “on the boil”, causing market uncertainty.

📢 Want more practical tips to improve your English while learning about today’s important topics? Sign up for the All About English Mastery Newsletter!

Follow our YouTube Channel @All_About_English for more great insights and tips.

This article was inspired by: Reuters, June 13, 2025 (https://www.reuters.com/)