“Crude oil prices surge sharply after Israel-Iran tensions. Will oil cross $100? Read the latest updates, expert predictions, and impact on India.”
In the recent past, the international market has experienced a sudden spike in crude oil prices, especially because of the increasing unrest in the Middle East. In our case, on June 13, 2025, the oil prices surged up on news of Israel attacking Iran which caused the scare of potential instability of oil supply in the region. This sharp increase has caught the interest of investors, traders and governments around the globe.
What Is the Reason Behind the Increasing Prices of Crude Oil?
The recent war between Israel and Iran has had the direct effect on the oil prices. The two countries happen to be along the major oil supply channels and therefore any conflict in the region usually results in the fear of supply reduction or delays. Particularly, the Strait of Hormuz, where a large percentage of oil in the world transits, is a cause of concern in such geopolitical tensions.
Consequently, Brent Crude oil prices reached $75 -78 per barrel, and at some point, it reached $78.50, the highest since 2022. As it is mentioned in Bloomberg reports, intraday, gains were even 13%, and this situation is serious.
JP Morgan forecasts: will oil hit $120?
JP Morgan, one of the world renowned financial institutions has also expressed its views on the crude oil prices. In the worst-case scenario, they believe that should the conflicts escalate further and the oil supplies be seriously hurt, the crude oil prices may skyrocket to $120 per barrel. But in their core prediction, they say that prices will stay within the range of $60 -65 a barrel in case of a defusion of the tensions or in case supply is balanced.
Such a huge disparity in price expectations is a clear indication of just how fickle and unpredictable the market is at the moment.
Effect on Indian Market
India is the eye witness of the effects of the global crude oil price increases. July crude oil futures on Multi Commodity Exchange (MCX) surged up by 10 per cent to 6,311 rupees a barrel and then stabilised at about 6,156 rupees a barrel. This is a steep increase and one of the highest points in the recent past on the Indian exchange.
Further, the stocks of Indian Oil companies such as IOC, BPCL and ONGC also responded to the news. As the crude price increases, the horror of import price hike and subsequent hike in petrol and diesel prices in India has become even more real.
What may happen next?
The crude oil prices in the next few weeks could take any of these scenarios:
- In case of worsening tension: The prices can grow even further and perhaps exceeding the $100 per barrel mark since supply fears will be the order of the day in the market.
- In case of easing tensions: Prices might level off and go back to the vicinity of 60-65 dollars.
- OPEC+ decisions: The policy of producing countries that export oil will also be a determining factor. Prices can also be affected by any increment or reduction in production.
Also Read : Tata Group Share Price Update: TCS, Tata Motors, Tata Steel & Latest News 2025
Conclusion
The prices of crude oil nowadays are very vulnerable to any geopolitical developments particularly in the Middle East. The market is waiting with crossed fingers that there will be stability. Investors, governments and ordinary citizens must keep themselves informed because fuel prices, inflation and stock markets would be impacted in case there is a further increase in crude prices.