Fears of Israeli strike on Iran nuclear plant surge oil

DDM News

Crude oil prices spiked on Wednesday amid fears of a potential Israeli strike on an Iranian nuclear facility.

Diaspora Digital Media (DDM) reports that this development sent ripples through global energy markets, escalating tensions in an already volatile Middle East.

Brent Crude gained nearly 1 percent to $66.03 per barrel in early Wednesday trading.

West Texas Intermediate followed, climbing to $63.09 per barrel.

Murban Crude also registered a notable increase, reaching $66.10 per barrel.

The price hikes were linked to reports of newly acquired U.S. intelligence suggesting Israel is preparing for a direct assault on Iranian nuclear sites.

This intelligence revelation emerged even as Washington continues diplomatic engagements with Tehran under the Trump administration.

CNN cited U.S. officials who said any Israeli military action would be a bold divergence from President Donald Trump’s current strategy.

Analysts say renewed hostilities between Israel and Iran could disrupt oil supplies and inflame global markets.

Geopolitical risks are now overshadowing bearish indicators in the oil market.

One such bearish factor is the 2.5 million barrel inventory increase reported by the American Petroleum Institute.

Another is Kazakhstan’s persistent overproduction, which exceeds its OPEC+ quota.

Despite these trends, oil prices continued to surge due to growing concerns over military escalation.

Experts remain divided over whether Israel will actually carry out a strike.

Within the U.S. government, opinions differ regarding the seriousness and feasibility of Israel’s plans.

Meanwhile, the International Energy Agency (IEA) revised its 2025 global oil demand growth forecast.

The IEA now projects an increase of 741,000 barrels per day, totaling 103.9 million barrels daily.

This revision is based on a more optimistic global economic outlook and relatively lower oil prices.

However, weaker demand from some non-OECD countries, notably India, has partially offset the forecast gains.

Looking ahead to 2026, the IEA anticipates similar demand growth of around 760,000 barrels per day.

If tensions between Israel and Iran escalate into armed conflict, oil prices could climb further.

Such a scenario could reverse recent progress toward market stability and rattle global supply chains.

Energy analysts are closely monitoring diplomatic and military signals from both Tel Aviv and Tehran.

Any confirmed Israeli airstrikes on Iranian nuclear infrastructure could push oil prices into volatile territory.

Diplomatic efforts are intensifying in Washington to prevent a breakdown in regional stability.

Analysts warn that even limited military strikes could lead to broader confrontations in the Gulf region.

For now, markets remain cautious but reactive, with prices climbing on speculative fears and geopolitical risk.

Diaspora Digital Media (DDM) will continue monitoring developments as energy markets brace for more shocks.

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