Fire and smoke rise into the sky after an Israeli attack on the Shahran oil depot on June 15, 2025 in Tehran, Iran.
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Crude oil futures rose more than 1% Tuesday, after President Donald Trump called for the evacuation of Tehran as Israel and Iran traded strikes for a fifth day.
The U.S. crude oil contract for July delivery increased $1.04, or 1.45%, to $72.81 per barrel in morning trading, while global benchmark Brent for August rose $1.22, or 1.67%, to $74.45
The impact of the conflict on the oil futures market has been modest so far, with prices rising about 7% since Israel launched its air campaign against Iran’s nuclear and ballistic missile programs on Friday.
Oil traders initially feared that Israel might strike Iran’s oil infrastructure in an effort to cripple the Islamic Republic’s economy. Israel has hit domestic energy facilities in Iran but has spared installations that export to the global market.
Iran is the third-largest oil producer in OPEC and exports about 1.6 million barrels per day mostly to China, according to data from OPEC and the Energy Information Administration.
Oil prices closed lower Monday on reports that Iran was seeking a ceasefire with Israel. Prices are rising again after Trump left the G7 summit in Canada early and demanded that everyone evacuate Iran’s capital city.
“Simply stated, IRAN CAN NOT HAVE A NUCLEAR WEAPON,” the president said on his social media platform Truth Social. “I said it over and over again! Everyone should immediately evacuate Tehran!”
The Israeli military said it killed Iran’s war-time chief of staff Maj. Gen. Ali Shadmani in an airstrike. Iran launched another volley of missiles at Israel.
Trump, meanwhile, said in a social media post that the U.S. was working on something “much bigger” than a ceasefire, without elaborating.
