LONDON/SINGAPORE: Oil prices soared more than 9% on Friday — marking their sharpest intraday jump since 2022 — after Israel launched airstrikes on Iran, targeting nuclear facilities, missile factories, and key military leaders. The escalation heightened fears of a wider conflict in the Middle East and potential disruption of global oil supplies.
Brent crude surged by \$6.29, or 9.07%, to \$75.65 per barrel, after hitting an intraday high of \$78.50 — its highest since January 27. Meanwhile, US West Texas Intermediate (WTI) crude rose \$6.43, or 9.45%, to \$74.47, peaking at \$77.62 — the highest since January 21.
The surge came amid investor anxiety that the conflict could escalate further. ING analysts noted that the market is now pricing in a significant geopolitical risk premium. Energy experts say the real threat to oil supply will depend on Iran’s response and whether the US becomes involved.
Concerns center on the potential closure or disruption of the Strait of Hormuz — a strategic chokepoint for about 20 million barrels of oil per day. Iran’s Supreme Leader Ayatollah Ali Khamenei vowed “harsh punishment,” fueling fears of retaliatory strikes across the region.
Market analysts warned that regional oil infrastructure and global energy flows could be at risk if the conflict spreads. Stocks fell sharply in early Asian trading, while investors moved to safe havens like gold and the Swiss franc.
