International Oil Prices Soar 10% After Iran Airstrike... Asian Stock Markets Weaken

US Stock Futures Down Over 1%, Gold Up Over 1%

JPMorgan: "If the Strait of Hormuz Is Blocked, Oil Could Reach $130 per Barrel"

International oil prices are surging on news that Israel has carried out an airstrike on Iran.

According to Bloomberg, as of 11:24 a.m. KST on the 13th, July West Texas Intermediate (WTI) futures were trading at $74.91 per barrel, up 10.10% from the previous session, while August Brent futures were at $76.06 per barrel, up 9.66%.

The Middle East accounts for one-third of the world's oil production, and Iran is the third-largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC), meaning the oil market may fluctuate depending on Iran's response.

There is also speculation in the market that Iran could block the key oil shipping route, the Strait of Hormuz, or attack oil tankers passing through it. The Strait of Hormuz is a vital export passage for Middle Eastern oil and gas, through which one-third of the world’s LNG and one-sixth of its oil is shipped. Middle Eastern crude imported into Korea also passes through this strait.

Previously, investment bank JPMorgan projected that if the Strait of Hormuz is blocked or if military conflict spreads across the Middle East, oil prices could rise to as high as $130 per barrel in a worst-case scenario.

Major stock markets are weak on the day. According to Yonhap Infomax and others, as of 10:57 a.m. KST, Japan's Nikkei 225 Average (-1.05%), South Korea's KOSPI (-0.64%), and Taiwan's TAIEX (-0.54%) were all declining.

As of 10:41 a.m. KST, China’s Shanghai Composite Index (-0.15%) and Hong Kong’s Hang Seng Index (-0.12%) showed slight downward movements.

As of 10:46 a.m. KST, US stock futures such as S&P500 (-1.52%), NASDAQ 100 (-1.57%), and Dow Jones Industrial Average futures (-1.39%) were also trading down more than 1%.

According to CoinMarketCap, the price of Bitcoin was around $103,825, down 4.3% from 24 hours earlier.

Gold, a safe-haven asset, was strong. As of 10:56 a.m. KST, the spot price for gold was $3,424 per ounce, up 1.15% from the previous session.

The value of the dollar, which had fallen to its lowest in three years amid US President Donald Trump's tariff threats, also rebounded.

The US Dollar Index, which measures the value of the dollar against six major currencies (including the euro and yen), fell to 97.621 just before news of Israel's airstrike on Iran but then rebounded to as high as 98.150. The Japanese yen and Swiss franc also appreciated.

Earlier in the day, Israel launched a pre-emptive attack on Iranian nuclear facilities. Israel confirmed the attack on Iran, saying it mobilized dozens of fighter jets to strike nuclear programs and related sites. Israeli media, citing military sources, reported that airstrikes were carried out on dozens of nuclear and military facilities across Iran.

Soojin Choi, Hankyung.com reporter naive@hankyung.com