Global oil prices surged more than 9% on Friday, reaching their highest levels in nearly five months, following a dramatic escalation in Middle East tensions after Israel launched airstrikes on Iran. The geopolitical shock has rattled energy markets and raised fears of supply disruption, especially in one of the world’s most critical oil-producing regions.
Brent crude futures jumped $6.29, or 9.07%, to $75.65 a barrel by early morning trading in Asia, briefly touching an intraday high of $78.50 — a level not seen since January 27. Meanwhile, U.S. West Texas Intermediate (WTI) crude climbed $6.43, or 9.45%, to $74.47 after peaking at $77.62, its highest since January 21.
These are the largest intraday gains for both benchmarks since early 2022, when Russia’s invasion of Ukraine triggered a global energy crisis.
Friday’s price shock follows Israel’s announcement that it had carried out targeted strikes on Iranian nuclear sites, missile factories, and senior military leaders, warning of a prolonged campaign to prevent Tehran from acquiring nuclear weapons. In response, Iran declared a state of emergency and vowed a harsh retaliation, fueling concerns over wider regional instability.
Analysts from ING noted, “Geopolitical risk has surged significantly, and the market is now factoring in a larger risk premium due to potential disruptions in oil supply.”
Traders in Singapore said the full impact on oil shipments would depend on how Iran chooses to respond — particularly whether it might target oil infrastructure or restrict access to the Strait of Hormuz, a vital artery through which nearly one-fifth of global oil flows.
“If Iran retaliates forcefully, especially targeting infrastructure or disrupting shipping routes, we could see supply losses of up to 20 million barrels per day,” said Saul Kavonic, senior energy analyst at MST Marquee.
While the U.S. has publicly distanced itself from the Israeli strikes, Secretary of State Marco Rubio stressed that Iran should not threaten American forces or interests in the region.
Priyanka Sachdeva, senior market analyst at Phillip Nova, warned that the situation could deteriorate quickly. “Iran’s declaration of emergency and preparation for retaliation not only threatens immediate supply but could spill into other oil-producing nations nearby,” she said.
Investors responded with a flight to safety. Gold prices rose, the Swiss franc strengthened, and global stock markets dipped sharply, with Asian indexes and U.S. futures leading the downturn.
As the world watches for Iran’s next move, the oil market remains on edge. A prolonged conflict could have far-reaching consequences not only for energy prices but also for global economic stability.
