Oil Prices Surge to 2025 High After US Strikes on Iran; India Monitors Supply Impact
New Delhi, June 23 — Global oil prices soared to their highest levels since January 2025 following US airstrikes on Iran's nuclear facilities and Iran’s threat to close the Strait of Hormuz, a crucial maritime passage that handles nearly 20 percent of global crude oil flow.
During early Monday trading, Brent crude futures jumped by $1.92, or 2.49 percent, reaching $78.93 per barrel. Simultaneously, US West Texas Intermediate crude rose by $1.89, or 2.56 percent, to hit $75.73 per barrel. At one point, Brent crude spiked nearly 5 percent before retracting some gains, unable to sustain its peak amid volatile geopolitical developments and unexpected shifts in oil reserves.
As per agency report, the rising hostility between Israel and Iran has heightened fears over potential disruptions in oil supplies from the Middle East, a region central to global energy exports. The US Energy Information Administration (EIA) revealed a significant drop of 11.5 million barrels in crude oil reserves last week, far exceeding the anticipated 2.3 million barrel drawdown, further fueling price pressure.
Rahul Kalantri, Vice President of Commodities at Mehta Equities Ltd, noted that crude oil is currently finding support at $74.20–$73.40 and facing resistance around $75.65–$76.20. In rupee terms, support levels are seen at ₹6,400–₹6,320, with resistance projected between ₹6,580–₹6,690.
Although Iran's threat to close the Strait of Hormuz has rattled markets, analysts caution that such threats have historically remained theoretical, and the strategic waterway has never actually been shut. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented that a closure of the strait would ultimately hurt Iran and its allies, particularly China, more than its adversaries.
Meanwhile, India's Petroleum and Natural Gas Minister Hardeep Singh Puri sought to reassure domestic consumers about potential supply disruptions. Addressing concerns about the geopolitical fallout, he affirmed that India has diversified its energy supply sources under Prime Minister Narendra Modi’s leadership. He emphasized that a substantial portion of India’s current crude imports no longer pass through the Strait of Hormuz.
Puri added that the government has been closely monitoring the evolving situation in the Middle East over the past two weeks and is confident in its preparedness to manage any adverse effects on India's oil supply chain.
