Overview

• Israel and Iran have each struck the other’s refineries, gas facilities and pipelines, escalating risks to both domestic fuel supply and export routes.
• Brent crude and U.S. West Texas Intermediate benchmarks jumped more than 4%, pushing prices into the mid-$70s per barrel on concerns over possible supply interruptions and rising inflation.
• In response to the strikes, Iran has increased its daily oil exports by about 44% since June 13 in an effort to move crude before further disruptions.
• Analysts warn that any closure or blockade of the Strait of Hormuz, through which nearly a third of seaborne oil flows, could drive prices toward $120 per barrel.
• President Trump has ordered additional U.S. fighter deployments to the region and is considering military strikes on Iran, adding to geopolitical uncertainty.