Israel’s Strike on Iran Likely to Impact Oil Industry

Oil markets don’t wait for peace talks; they react to missiles. Last week Israel launched a massive strike on Iranian nuclear and military targets. Dozens of Israeli aircraft targeted facilities believed to be central to Iran’s nuclear weapons program. According to the IDF, Iran was just days away from being able to enrich enough uranium for up to 15 nuclear warheads.

Israeli Prime Minister Netanyahu stated Iran is preparing to mass-produce tens of thousands of ballistic missiles, some capable of carrying nuclear payloads in the near future.

Here’s the hard truth: this is not a regional flare-up. This is the kind of geopolitical flashpoint that impacts global oil prices. Crude prices are already nearly $10 a barrel higher than the previous week.

Iran sits on one of the world’s largest oil reserves and controls strategic access to the Strait of Hormuz, a chokepoint for one-third of global oil shipments.

Geopolitical instability in the Middle East translates to economic pain at the pump and the need to become energy independent at home.