ISLAMABAD (PEN) : Global oil markets reacted sharply on Friday as Brent and WTI crude prices surged over 7% after Israel confirmed military strikes on Iran, escalating fears of regional instability and potential disruptions in energy supply.*
Brent and WTI Crude Reach Multi-Month Highs
Brent crude futures rose by \$5.29, or 7.63%, reaching \$74.65 per barrel in early trading and briefly touching a high of \$75.32 — the highest level since April 2. Meanwhile, U.S. West Texas Intermediate (WTI) crude climbed by \$5.38, or 7.91%, to \$73.42 per barrel, marking its strongest performance since February 3.
The spike follows Israel’s announcement of a series of coordinated strikes on Iranian targets, which Prime Minister Benjamin Netanyahu confirmed were aimed at nuclear and ballistic missile infrastructure. The move comes amid long-standing Israeli concerns over Iran’s alleged nuclear ambitions — accusations Tehran has consistently denied.
Market Reactions and Strategic Concerns
Energy analysts are warning that the conflict introduces significant volatility into global markets. “The Israeli attack on Iran has heightened the risk premium further,” said Saul Kavonic, senior energy analyst at MST Marquee. He noted that the market impact could grow if Iran retaliates by targeting energy assets or blocking critical transport routes.
“In an extreme scenario, Iran could affect up to 20 million barrels per day of oil flows, either through attacks or by limiting access through the Strait of Hormuz,” Kavonic added. The strait is a vital maritime channel through which nearly a third of global seaborne oil passes.
Priyanka Sachdeva, senior market analyst at Phillip Nova, echoed similar concerns, saying, “This raises the risk not just of direct supply disruptions but of spillover effects into other neighbouring oil-producing nations.”
Financial Markets React to Escalation
Global financial markets also felt the impact. Stock indices fell in early Asian trading, led by declines in U.S. futures. Investors moved toward traditional safe-haven assets, including gold and the Swiss franc.
“The alarming escalation is a blow to risk sentiment,” said Tony Sycamore, a market analyst at IG. “Until there is more clarity on Iran’s response, we’re likely to see continued risk aversion as traders unwind positions before the weekend.”
U.S. Position and Warnings
U.S. Secretary of State Marco Rubio emphasized that the airstrikes were a “unilateral action” by Israel, confirming that Washington had no role in planning or executing the operation. However, he issued a stern warning to Iran: “Any attack on U.S. personnel or assets will be considered a red line.”
Former President Donald Trump also commented on the situation, saying he did not anticipate American involvement unless U.S. interests were directly threatened.
Energy Security and Global Inflation Risks
The intensifying conflict raises new concerns about energy security and its broader economic implications. Any disruption to shipping through the Strait of Hormuz could send oil prices even higher and stoke global inflation — complicating efforts by central banks to maintain economic stability.
