London June 17 2025: Oil prices were driven higher on Tuesday by the Iran-Israel conflict, though major oil and gas infrastructure and flows have so far been spared from substantial impact.
Brent crude futures gained $1.49, or 2.03%, to $74.72 a barrel by 1315 GMT. U.S. West Texas Intermediate crude was up $1.28, or nearly 1.78%, at $73.05.
Both contracts rose more than 2% early in the session but also retreated in volatile trade before bouncing back.
While there was no noticeable interruption to oil flows, Iran partially suspended gas production at the South Pars field that it shares with Qatar after an Israeli strike started a fire there on Saturday. Israel also hit the Shahran oil depot in Iran.
“The market is largely worried about disruption through (the Strait of) Hormuz, but the risk of that is very low,” said Saxo Bank analyst Ole Hansen.
There is no appetite for closing the waterway, given that Iran would lose revenue and the U.S. wants lower oil prices and lower inflation, Hansen added.
Two oil tankers collided and caught fire on Tuesday near the Strait of Hormuz, where electronic interference has surged, highlighting the risks to companies moving oil and fuel supplies in the region.
