Exxonmobil CEO Darren Woods explains the impact of the Middle East conflict on the global oil market on the “special report.”
According to industry experts, if the conflict between Israel and Iran cuts supply significantly in the global oil market, prices could skyrocket to up to $120 per barrel.
Prices for the West Texas Intermediate, the major crude oil benchmark, are sitting for the first time in a year, but as the Israeli-Iran conflict enters its sixth day, global benchmark Brent crude oil approaches five months high on Wednesday.
president Donald Trump According to Ewa Manthey, a product strategist at ING Financial Service, he discussed the escalating conflict on Tuesday, speculating that the US is preparing to take part in the attack, and could generate more volatility in the market.
CEO Exxonmobil talks about oil supply amidst Iran-Israel conflict
On June 16th, 2025, a huge wave of smoke from Sharan Oil Depot, northwest of Tehran. (Getty Images/Getty Images)
However, Mann said “important market worries” could disrupt passing through the Strait of Hormuz, an important waterway connecting the Persian Gulf and the Gulf of Oman and the Arabian Sea. The waterways are not wide enough to handle the world’s largest crude oil tanker. This is considered to be one of the most important oil choke points in the world. Energy Information Management (EIA).
Darren Woods, CEO of Exxonmobil Repeating these concerns, the global oil supply is sufficient to withstand Iran’s export disruption, but the greater concern is the potential impact on oil shipments through waterways that travel almost a third of the world’s marine industry trade.
Heavy smoke plumes rise from an oil refinery in southern Tehran after being attacked by an Israeli strike on June 15, 2025. (Getty Images/atta kenare/afp via Getty Images)
In 2024, 20 million barrels of oil per day, about 20% of the world’s oil liquid consumption, flowed through the waterways. According to the EIA, if oil closes there are few alternative options to move oil out of the strait either.
Oil prices skyrocket after Israel attacks Iran
The major disruption in these flows would be enough to push prices $120 per barrelaccording to Manthey. However, if the chaos continues at the end of the year, she noted that Brent can trade with the new record highs above the record highs of nearly $150 per barrel that he reached in 2008.
President Donald Trump wrote to Iran’s supreme leader Ayatollah Ali Khamenei on March 6, 2025, telling him to “deal” with the United States “military face” over the nuclear program. (Fox News Images using Getty Images/Getty Images)
“If this happens, we need to see the government take advantage of strategic oil reserves,” Mante said.
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Mantey said another solution would be if the petroleum exporter (OPEC+) organization utilized spare production capacity of more than 5 million barrels per day.
“While they are in the process of bringing supplies back online, disrupting Iran’s supply could encourage this supply to return at a faster pace,” Mantei said.
