The Woodside Energy Group Ltd (ASX: WDS) share price reached an 18-month high of $27.34 in early trading on Friday.
That's the highest share price for the market's largest oil and gas company since September 2024.
By comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.1% as the market takes a breather following yesterday's record high.
Woodside and other ASX oil shares are rising today on fears that US military action in Iran may be imminent.
This could impact the global oil supply because Iran could disrupt oil export shipments along the critical Strait of Hormuz.
More than 20% of global oil and gas exports, mostly from Iran, Iraq, Qatar, and the United Arab Emirates (UAE), pass through the strait.
The strait runs between Iran in the north and Oman and the UAE in the south.
It is the only sea channel linking the Persian Gulf with the Gulf of Oman and the Arabian Sea.
Image source: Getty Images
What's the latest on US-Iran nuclear talks?
US President Donald Trump has set a deadline for Iran to reach a nuclear agreement.
Analysts at Trading Economics said:
Trump signaled that negotiations would likely have no more than 10 to 15 days to advance.
At the same time, the US has deployed its largest military buildup in the Middle East since the 2003 Iraq invasion, raising the prospect of a broader and more sustained operation than last June's overnight strike on Iran's nuclear facilities.
The move has heightened the risk of supply disruptions, with investors concerned that a US-Iran conflict could prompt Iran to restrict traffic through the Strait of Hormuz, a critical corridor for crude exports from the region.
Reports indicate US intervention would likely be limited to a one-week campaign.
Israel's government is hoping for regime change in Iran.
Oil price rises to a 6-month high
Fears of disruption to the global oil supply sent Brent crude oil futures to a 6-month high above US$71.60 per barrel today.
Brent crude is now on track for a weekly gain of more than 5%.
WTI crude oil futures are trading above US$66.45 per barrel, which is also a 6-month high.
WTI crude is also heading for a weekly gain of more than 5%.
The analysts said the largest drawdown in US crude inventory since early September is adding to today's bullish market momentum.
Government data shows US crude inventory fell by 9 million barrels last week.
Right now, the Woodside share price is up 0.11% to $27.13 per share.
Meantime, earnings season continues, with Woodside scheduled to release its full-year FY25 results next Tuesday.
