Oil Panic Buying After Iran Strikes?

President Trump confirmed that the U.S., together with Israel, carried out three strikes on Iranian nuclear facilities. In response, Iran’s parliament has backed a proposal to seal the Strait of Hormuz — a vital global oil shipping route. The final decision rests with Iran’s Supreme National Security Council and Supreme Leader Khamenei.

A blockade could cause oil prices to surge dramatically.

ClearView Energy Partners estimates a short-term closure might add between $8 and $31 per barrel, while JPMorgan warns that a full-scale conflict and complete shutdown could drive prices up to $120–$130 per barrel.

However, recent market reactions were more muted. Oil prices fell back below $70 after Iran retaliated with missile strikes on a U.S. base, but the Strait remained open.

Additional insights:

• The U.S. strikes on June 22, called “Operation Midnight Hammer,” targeted Fordow, Natanz, and Isfahan using bunker-buster bombs. While President Trump claimed the sites were “completely obliterated,” intelligence and IAEA sources reported that nuclear infrastructure was badly damaged but not beyond repair.

• Iran has already begun repairs at the Fordow site, and the IAEA warns that uranium enrichment could resume within months.

• Despite threats to close the Strait of Hormuz, it remains open. A cease-fire agreement brokered around June 24 helped calm immediate market fears.

• Analysts note that Middle East disruptions now have less impact on oil prices than in previous decades due to more diversified global supply chains.