Oil Prices Surge Over 12% Amid Israel-Iran Conflict, Middle East Supply Concerns

Crude oil prices have surged sharply due to escalating tensions and missile attacks between Israel and Iran, raising fears of a broader Middle East conflict that could disrupt global oil supplies. Brent crude futures rose as much as 13 percent following Israel's strike on an Iranian nuclear facility, reaching highs not seen since January, while U.S. West Texas Intermediate crude also surged over 13 percent. Analysts warn that if Iran withdraws from the oil market or closes the Strait of Hormuz, a critical passage for a significant portion of global oil trade, prices could rise even further, potentially hitting $120 a barrel. U.S. President Donald Trump issued a stern warning to Iran's Supreme Leader to finalize a nuclear deal or face consequences, contributing to market volatility. The geopolitical turmoil has also impacted financial markets globally, with stock indices falling and investors seeking safe havens such as defense and energy stocks and government bonds. Despite some short-term easing, the risk of supply disruptions keeps oil prices elevated, fueling uncertainty in energy and financial sectors.