Global oil markets reacted sharply following reports that Israel launched attacks on Iran, triggering heightened tensions in the Middle East and sending oil prices soaring.
The price of Brent Crude, the international benchmark, surged by more than 10% shortly after the news broke, marking its highest level since January 2025. Although prices settled slightly as European markets opened, Brent crude remained around 5% above the previous day’s close, trading near $72.80 per barrel. In the United States, West Texas Intermediate (WTI) crude hovered around $73.20 per barrel.
This sudden jump reflects investor fears that an intensifying conflict between Iran and Israel could jeopardize oil supplies from a region critical to the global energy market. The Strait of Hormuz, a vital shipping passage connecting the Gulf to the Arabian Sea, sees about 20% of the world’s oil transit. Any disruption here could have significant repercussions on supply and prices worldwide.
While current prices remain over 10% lower than the same period last year and well below the record highs above $100 seen after Russia’s 2022 invasion of Ukraine, the recent volatility has already unsettled global financial markets. Major stock indices across Asia and Europe retreated on Friday, with Japan’s Nikkei index closing down 0.9% and the UK’s FTSE 100 slipping 0.4%. Safe-haven assets such as gold and the Swiss franc gained traction, with gold prices hitting their highest levels in nearly two months at $3,423.30 per ounce.
Following the attacks, the Israeli Defence Forces reported that Iran launched approximately 100 drones targeting Israel, escalating the hostilities. Analysts remain cautious but divided on the outlook. Vandana Hari of Vanda Insights described the situation as “explosive” but noted previous episodes of Israel-Iran confrontations had de-escalated quickly. However, she warned of the potential for a broader conflict capable of disrupting Middle Eastern oil exports.
Capital Economics analysts projected that if Iran’s oil infrastructure or export facilities come under attack, Brent crude prices could spike to $80-$100 per barrel. Yet, such price increases might prompt other oil producers to boost output, thereby tempering the overall impact on global inflation.
In the UK, motoring organization RAC spokesperson Rod Dennis commented on the uncertainty surrounding the effect on petrol prices, noting it was “too soon” to predict the consumer-level impact. He highlighted that the final petrol price depends not only on wholesale prices but also on retailer margins.
Market watchers will continue to monitor the conflict’s trajectory closely, as any disruption in one of the world’s most important oil corridors could reshape energy prices and global economic stability.
Source:NKONKONSA.com
