Israel Strikes Iran Raise Oil Prices Over 10% Amid Middle East Tensions

Oil prices surged sharply, rising more than 10% globally after Israel launched preemptive airstrikes on Iranian nuclear, missile, and military sites, escalating tensions in the Middle East and raising fears of disrupted oil supplies. Brent crude and US West Texas Intermediate crude hit their highest levels since January, with Brent reaching an intraday high of $78.50 per barrel. Israeli Prime Minister Benjamin Netanyahu vowed to continue the operation until the threat is removed, targeting Iran’s main enrichment facility at Natanz and ballistic missile programs, while Iran’s Supreme Leader Ayatollah Ali Khamenei warned of severe retaliation. The surge in crude prices triggered declines in shares of domestic oil marketing companies in India like BPCL, HPCL, and IOC, due to concerns over profit margins amid rising crude costs. Market analysts highlighted that the oil market is factoring in a higher risk premium due to geopolitical uncertainty, especially related to the strategic Strait of Hormuz, a critical chokepoint for global oil shipments. Additionally, Malaysian oil-and-gas stocks outperformed broader market declines, reflecting sector-specific gains amid the geopolitical crisis.