ISLAMABAD: Oil prices soared more than nine percent on Friday after Israel launched a direct military strike on Iran, sending shockwaves through global markets and heightening fears of disruptions in oil supply.
Brent crude futures jumped $6.29, or 9.07%, reaching $75.65 a barrel by 0315 GMT after climbing as high as $78.50 — the highest since January 27.
U.S. West Texas Intermediate (WTI) crude also spiked by $6.43, or 9.45%, to $74.47 a barrel, hitting an intraday peak of $77.62, a level not seen since January 21.
The sharp jump in prices follows Israel’s announcement that it had struck multiple strategic sites in Iran, including nuclear infrastructure and missile factories.
Rising Risk in Global Oil Supply
The military escalation has increased investor anxiety about oil security across the region.
Analysts warn that while no immediate supply has been disrupted, any Iranian retaliation targeting oil routes or facilities could have significant consequences.
Senior energy analyst Saul Kavonic noted that Iran has the capacity to impact up to 20 million barrels per day in an extreme scenario by targeting infrastructure or restricting passage through the vital Strait of Hormuz.
“If the conflict escalates further, we could see significant disruption not just from Iran, but also across neighboring oil-producing nations,” said market analyst Priyanka Sachdeva.
Iran has reportedly declared a state of emergency and is preparing a military response, according to local media.
Global Markets React Sharply
Beyond oil, the geopolitical shock rattled financial markets, prompting a rush toward safe-haven assets like gold and the Swiss franc.
Asian stocks plunged in early trading, led by U.S. futures, as risk appetite sharply declined.
IG market analyst Tony Sycamore said the developments are severely damaging market confidence and likely to lead to continued volatility through the weekend.
U.S. Secretary of State Marco Rubio clarified that Washington was not involved in the strikes, labeling them a “unilateral action” by Israel and warning Iran not to target American forces.
With tensions mounting, investors are bracing for more instability across global markets.
