Global oil markets and diplomatic corridors have been thrown into disarray following Israel’s targeted military strikes on Iranian nuclear and military facilities on Thursday, June 12, 2025. The sudden escalation has sparked regional lockdowns, airspace closures, and a sharp surge in global crude oil prices.
Israel Strikes Iranian Infrastructure
According to international reports, Israeli forces launched over 100 coordinated airstrikes on critical Iranian locations, including suspected nuclear enrichment facilities in Natanz and strategic military sites near Tehran. Several high-ranking Iranian military officials and nuclear scientists are believed to have been killed in the operation.
The Israeli government has not formally commented on the operation, but officials have described it off record as a “preventive measure” aimed at neutralising Iran’s nuclear threat.
Iran Responds, Regional Airspace Closes
In swift retaliation, Iran deployed a series of drone attacks toward Israeli territory, intensifying fears of a broader military confrontation. While most drones were intercepted by Israel’s Iron Dome system, the show of force from Tehran was enough to prompt widespread regional safety measures.
By Thursday evening, multiple neighbouring countries including Jordan, Iraq, Syria, and Iran had fully shut down their airspace to civilian flights. Israel also grounded domestic and international flights as a precaution. These closures have disrupted commercial aviation routes across the Middle East and heightened anxieties around civilian safety.
Crude Oil Prices Spike
One of the immediate global consequences of the confrontation was a surge in crude oil prices.
- Brent Crude, the international oil benchmark, rose by over 7%, reaching above $77 per barrel, its highest point in months.
- WTI Crude, the U.S. benchmark, also spiked by nearly 14%, hitting a peak of $77.62 before settling slightly lower.
The price jumps were driven by fears that continued hostilities could destabilize oil production and transit across the region, particularly through the Strait of Hormuz—a critical shipping route for one-fifth of the world’s crude supply.
U.S. and Trump React
Although the Biden administration has maintained a cautious tone, the United States has increased its military presence in the Gulf to deter further escalation.
Former President Donald Trump, posting on his Truth Social platform, issued a blunt warning to Iran. “Iran must make a deal, before there is nothing left,” he wrote, emphasizing that Israel is armed with the “most lethal” American-made weapons. He also stated that Iran’s hardline leadership is “all dead now, and it will only get worse.”
While Trump is no longer in office, his remarks have intensified the already charged atmosphere surrounding the conflict.
Global Reactions and Outlook
The international community has called for restraint. The United Nations, European Union, and several non-aligned states have urged both Israel and Iran to de-escalate and return to diplomatic dialogue.
Analysts warn that if military activities continue or expand, crude oil prices could climb above $100 per barrel, with ripple effects on inflation, energy costs, and global supply chains.
As of Friday morning, airspace across affected countries remains restricted, and global markets are closely watching developments for signs of further military engagement or diplomatic intervention.
