Global Oil Prices Surge After Israeli Strike on Iran
Global oil prices spiked sharply following reports that Israel had launched a military strike on Iran, triggering fears of broader instability in the energy-rich Middle East. Brent crude, the international oil benchmark, surged more than 10% at one point — its highest since January — before settling at $74.23 a barrel, still over 7% above Thursday’s closing price.
Markets React to Middle East Escalation
Traders and analysts are concerned that the mounting tensions between Iran and Israel could disrupt oil supplies from the region, which plays a critical role in global energy flows. The sudden escalation has put the Strait of Hormuz, a vital shipping lane through which nearly 20% of the world’s oil passes, in the spotlight once again. Any threats to shipping in this narrow waterway could severely impact global energy markets.
Impact on Consumers and Inflation Risk
The sharp rise in oil prices could ripple across the global economy, influencing everything from transportation costs to food prices. While it’s too early to determine the long-term impact on fuel prices at the pump, UK motoring body RAC noted that retail fuel prices would depend on whether this spike in wholesale oil prices is sustained and how retailers adjust their margins.
Stock Markets Slide, Safe-Haven Assets Gain
The geopolitical shockwave also sent global equity markets tumbling. Asian and European indexes closed lower, with Japan’s Nikkei slipping 0.9% and the FTSE 100 down 0.39%. U.S. markets followed suit — the Dow Jones Industrial Average fell 1.79%, while the S&P 500 dropped by 0.69%.
Meanwhile, investors rushed to traditional safe-haven assets. Gold prices jumped 1.2%, reaching $3,423.30 an ounce — their highest in nearly two months — while the Swiss franc also strengthened.
What’s Next for Global Oil Prices?
Analysts warn that the path forward depends heavily on how the situation evolves. If Iran’s oil infrastructure becomes a direct target, Brent crude could spike to $80–$100 per barrel. However, a prolonged surge is unlikely unless major supply lines are disrupted. Other oil-producing nations may increase output to stabilize the market.
“It’s a volatile moment — either it simmers down quickly like past incidents, or it risks flaring into a broader conflict,” said Vandana Hari of Vanda Insights.
As energy markets watch closely, the world waits to see how this high-stakes confrontation will unfold — and how it will continue to affect global oil prices in the days ahead.
