Global oil markets reacted dramatically Friday following Israel's widespread military offensive against Iran. Retaliatory threats from Tehran fueled fears of a broader Middle East conflict. This escalating tension directly threatens crucial oil supply routes.
Brent crude futures surged by $5.1, a significant 7.4% jump, reaching $74.46 per barrel. Earlier, it peaked at $78.50, its highest since January 27, reflecting immediate market apprehension.
Similarly, U.S. West Texas Intermediate (WTI) crude spiked by $5.1, climbing 7.5% to $73.15. It briefly touched $77.62, its strongest level since January 21, mirroring Brent's upward trend.
These represent the largest single-day intraday gains for both benchmarks since 2022. That period saw Russia's invasion of Ukraine severely disrupt global energy markets, highlighting the current crisis's severity.
Israel claimed responsibility, stating strikes targeted Iran's nuclear facilities, ballistic missile sites, and military leadership. This operation marks the beginning of a sustained campaign against Iran's nuclear ambitions.
Iran confirmed damage to its Natanz nuclear facility. Investigations are ongoing, with no evidence of widespread contamination reported, but the incident remains a critical concern.
Market analysts are closely monitoring the Strait of Hormuz. This vital chokepoint, through which nearly 20% of global oil passes, is now under heightened scrutiny due to escalating tensions.
The global energy sector is on high alert. Fears of prolonged conflict and potential sanctions heavily weigh on future oil supply stability, causing widespread uncertainty.
Source: https://thebureau.com.ng/oil-prices-surge-israel-iran-conflict/