Oil hedging activities in the United States have reached unprecedented levels following Israel's recent attack on Iran, which caused a significant spike in oil prices. According to a report by Reuters, West Texas Intermediate (WTI) crude futures surged, closing at around $75 a barrel, prompting U.S. producers to lock in the gains through 2026. This surge in hedging activity was facilitated by Aegis Hedging, which saw record volumes on June 13, marking the highest single-day rise since July 2022.

IndexBox data reveals that the U.S. produces approximately 13.56 million barrels of oil per day. The recent geopolitical tensions provided traders with a unique opportunity to lock in favorable prices, a move that was further encouraged by the market dynamics observed on the Aegis Hedging platform. The platform, responsible for managing hedging for 25-30% of U.S. output, experienced its highest trading volume and number of trades on the same day.

Matt Marshall, president of Aegis Hedging, indicated that the impact of Israel's actions on oil prices could last for about six months. This event-driven price reaction led to a significant increase in the front of the oil futures curve, influencing producers' hedging strategies. Many producers, recognizing the potential for price volatility, opted for aggressive hedging to secure prices above their budget for the first time in months.

Rhett Bennett, CEO of Black Mountain Energy, emphasized the importance of disciplined market monitoring and strategic hedging to mitigate risks and meet reserve-based lending covenants. The recent surge in hedging volumes underscores the critical role of strategic risk management in the oil industry, especially in the face of geopolitical uncertainties.

Source: IndexBox Market Intelligence Platform

This report provides an in-depth analysis of the crude oil market in the U.S.. Within it, you will discover the latest data on market trends and opportunities by country, consumption, production and price developments, as well as the global trade (imports and exports). The forecast exhibits the market prospects through 2030.

Record Oil Hedging in U.S. Following Israel-Iran Conflict - News and Statistics

Following the Israel-Iran conflict, U.S. oil hedging activities reached record levels as oil prices spiked. Aegis Hedging reported record trading volumes, while producers locked in prices through 2026. The event highlighted strategic risk management in the oil industry amid geopolitical tensions.