Oil Markets Whipsaw: Brent, US Crude Plunge $4 After Hitting 5-Month Highs Amid Iran-US Tensions

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Oil prices saw wild swings on June 23, with Brent and US crude futures surging to their highest levels since January before plunging over $4 in volatile late-session trading. The turmoil followed US and Israeli strikes on Iranian nuclear sites and Iran’s retaliatory threats targeting regional US military bases.

Key Highlights:

Brent crude soared as much as 5.7% to $81.40 a barrel, while US crude hit $78.40, both five-month highs, before reversing sharply as traders assessed the risk of further escalation in the Middle East.
Prices tumbled over $4 by late evening as Iran’s retaliation focused on military, not energy, assets—easing fears of immediate disruption to oil flows through the critical Strait of Hormuz.
Goldman Sachs and HSBC warned that a blockade of the Strait could send Brent above $110, but analysts say Iran is unlikely to risk its own oil revenue by closing the waterway.
Despite the volatility, oil supply remains unaffected so far, though ship-tracking data shows some tankers rerouting near the Strait.
Stock markets remained steady, suggesting hopes that the conflict will not escalate further.

Outlook:

With geopolitical risks still high but supply intact, oil prices are expected to stay volatile. Any hint of disruption in the Strait of Hormuz could trigger another price spike, keeping traders and global markets on edge.

Sources: Reuters, Bloomberg, Trading Economics