Rich Asplund

Mon, Jun 23, 2025, 12:22 PM4 min read

August WTI crude oil (CLQ25) Monday closed down -5.33 (-7.22%), and August RBOB gasoline (RBQ25) closed down -0.1114 (-4.82%).

Crude oil and gasoline prices on Monday gave up sharp overnight gains and then plunged Monday afternoon after Iran's retaliation for the US attack on the country's nuclear sites was less severe than expected and spared US energy assets.  Crude oil sank Monday afternoon when Iranian missile strikes on US bases in Qatar were intercepted and did no damage to US assets.  Crude prices had already given back a 6% surge in overnight trade on speculation that Iran's response to the US bombing of its nuclear sites is unlikely to disrupt oil supplies from the Middle East significantly.

• 1 Nuclear Energy Stock to Buy With 21% Upside Potential in June 2025

• Palantir, Nuclear Stocks, and the Put/Call Ratio: Key Stocks, Sectors, and Indicators on Watch After U.S. Strikes on Iran

• Crude Oils Seasonal Tendency,: Slippery Slope or Bunker Buster?

• Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now!

Crude prices on Monday initially soared to a 5-1/4 month high in the initial reaction to the US strike over the weekend on Iran's nuclear facilities.  Crude has support due to concern that the US strikes over the weekend on Iran's nuclear facilities could lead to an escalation of the Israel-Iran conflict that could lead to disruption of Middle Eastern oil supplies.  Iran vowed retaliation and kept up attacks on Israel Monday, while Israeli forces kept up strikes on Iranian military sites and airports.  Iran's army command said the US has directly entered into war and should await "severe consequences" and that the Iranian army is "now free to take any action" against US interests.  President Trump said he would respond with "far greater" force to any Iranian retaliation on US assets.

So far, Iran has not tried to close the vital Strait of Hormuz, which handles about 20% of the world's daily crude shipments and also 20% of the world's LNG shipments.  However, Iran's parliament called for the closure of the strait on Sunday, although this cannot happen without approval from Supreme Leader Khamenei.  Energy research firm Kpler Ltd. said, "If Iran blocks the Strait of Hormuz, even for one day, oil can temporarily hit $120 to $150 a barrel, and if it attacks major oil production or export facilities in neighboring countries, it may drive up prices higher for longer."