Global oil prices surged dramatically on Friday after Israel confirmed airstrikes on Iran, fueling fears of a wider conflict in the Middle East that could threaten global energy supply chains.
Brent crude futures jumped by $5.29 (7.63%) to $74.65 per barrel, briefly hitting a peak of $75.32 — the highest since April 2. Meanwhile, US West Texas Intermediate (WTI) crude climbed by $5.38 (7.91%) to $73.42, reaching levels last seen in early February.
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The spike followed Israel’s acknowledgment of military operations against Iranian targets early Friday, escalating already tense regional dynamics. Iranian media reported multiple explosions in Tehran, further stoking speculation of a retaliatory move by Iran.
Israeli Prime Minister Benjamin Netanyahu stated that the strikes focused on Iran’s nuclear infrastructure, ballistic missile systems, and other strategic military locations. Israel has maintained that such preemptive actions are vital to prevent Iran from acquiring nuclear weapons — a claim Iran has consistently denied.
Market experts said the events added a fresh “risk premium” to oil prices. MST Marquee’s energy analyst Saul Kavonic explained that while oil supply remains steady for now, serious disruptions could arise if Iran targets oil infrastructure or blocks the Strait of Hormuz — a vital maritime corridor for oil shipments.
“In a worst-case scenario, up to 20 million barrels per day of global oil supply could be impacted if Iran escalates,” Kavonic noted.
Tensions remain high, with Iran reportedly declaring a state of emergency and preparing a possible counter-strike. Priyanka Sachdeva, senior analyst at Phillip Nova, warned that the situation could impact not only Iranian exports but also regional oil producers, intensifying market volatility.
The rising geopolitical risk also spooked global financial markets. Asian stocks fell sharply, US futures dipped, and investors shifted funds into safe-haven assets like gold and the Swiss franc.
Tony Sycamore, an analyst at IG, described the developments as a major blow to investor confidence. “Unless we get clearer signals on Iran’s next move, markets will likely stay in risk-off mode,” he said.
US Secretary of State Marco Rubio clarified that the attack was initiated solely by Israel and warned Iran not to threaten American forces. Former President Donald Trump echoed caution, saying the US wouldn’t seek conflict unless its personnel were directly targeted.
Analysts stressed that any further escalation, especially involving the Strait of Hormuz — through which nearly one-third of the world’s seaborne oil passes — could severely impact global oil markets and spark broader economic instability.
