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Oil Prices Soar Over 7% After Israeli Strike on Iran

Crude oil prices surged more than 7% on reports that Israel launched a military strike against Iran, sending shockwaves through global markets and reigniting fears of a broader conflict in the Middle East. The sharp rally reflects heightened concerns over potential disruptions to global energy supplies from one of the world’s most critical oil-producing regions. The National

Geopolitical Shock Fuels Energy Market Volatility 

Brent crude spiked to over $90 a barrel in early trading, while West Texas Intermediate (WTI) surged past $86. The escalation comes amid already tense geopolitical conditions and adds further pressure on oil markets that have been grappling with tightening supply and growing global demand.

Investors rushed into energy assets following initial reports of the Israeli airstrike, fearing a potential retaliation from Iran and wider regional instability. Iran, a key member of OPEC and a significant crude exporter, sits near the Strait of Hormuz—a vital passage through which nearly one-third of the world’s seaborne oil flows. Any military activity threatening this route could have immediate consequences for the global supply chain.

In tandem with rising oil prices, global equities showed signs of strain as risk appetite weakened. Safe-haven assets like gold also saw notable inflows, signaling a broader flight to safety across financial markets. Reuters

Investors Brace for Prolonged Uncertainty

While official details of the strike remain limited, the market’s response highlights the sensitivity of energy prices to geopolitical events. Analysts warn that further escalation—particularly if it draws in other regional powers—could push oil prices even higher, potentially surpassing key psychological thresholds and exacerbating inflationary pressures worldwide.

The timing is particularly critical, with central banks already struggling to manage inflation without derailing fragile economic recoveries. Rising oil prices may further complicate policy decisions in the months ahead.

Market participants are now closely monitoring the situation for signs of de-escalation or further military engagement. As geopolitical tensions rise, the energy sector is likely to remain highly volatile, with crude oil positioned as both a barometer and a driver of investor sentiment in the days ahead. Seeking Alpha

 

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