London: Global oil prices soared after Israel launched a military strike on Iranian nuclear sites and key military commanders, sparking fears of a wider conflict in the Middle East that could disrupt global oil supplies.
Brent crude, the international oil benchmark, jumped more than 10 percent during early trading before easing slightly to close over 7 percent higher at $74.23 a barrel, its highest level since January.
The spike reflects growing anxiety among traders that tensions between Israel and Iran could threaten oil shipments from the Gulf region.
The cost of crude oil has a wide-ranging impact on the global economy, influencing transportation, manufacturing, and consumer prices. Experts warn that global fuel prices may rise sharply if the conflict escalates.
In response to the Israeli strike, Iran reportedly launched about 100 drones toward Israel, according to the Israeli Defence Forces. Analysts say markets are now on high alert, watching closely for signs of further escalation.
Much of the concern centers on the Strait of Hormuz, a narrow waterway through which nearly 20 percent of the world’s oil supply is shipped. Any disruption there could severely impact global energy markets.
Financial markets reacted sharply. Major stock indices across Asia and Europe fell, with Japan’s Nikkei down 0.9 percent and the UK’s FTSE 100 slipping 0.39 percent. The Dow Jones dropped 1.79 percent on Wall Street, while the S&P 500 lost 0.69 percent.
Safe-haven assets surged, with gold climbing 1.2 percent to $3,423.30 an ounce and the Swiss franc strengthening.
Analysts warn that if Iran’s oil infrastructure is targeted, Brent could rise to $80–$100 per barrel. However, increased production from other countries could help stabilize prices.
