Oil Prices Surge Amid Israel-Iran Tensions

Tensions between Israel and Iran have triggered a sharp spike in global oil prices, rising by up to 8–9% after Israeli strikes on Iranian nuclear and military sites, though there have been no major disruptions to oil flows or infrastructure so far. The Strait of Hormuz, which handles about a fifth of global oil shipments, remains open with only minor declines in cargo movement, but concerns persist over the risk of closure. The International Energy Agency has reiterated that markets are currently well supplied and stands ready to release emergency oil stocks if necessary, while OPEC has criticized the IEA for potentially alarming the market without justification. Most analysts and OPEC+ expect the conflict to stay geographically contained, with no deliberate attacks on wider regional oil infrastructure reported. Indian and other Asian refiners confirm that supply remains stable but warn that a prolonged conflict or closure of the Strait would significantly increase shipping and insurance costs. The situation remains fluid as market participants closely monitor developments for signs of escalation.