Oil Prices Surge as Middle East Tensions Escalate

Oil prices surged by over $4 a barrel after Israel's military action on Iran, escalating Middle East tensions and worries over disrupted supplies. Brent crude and U.S. West Texas Intermediate saw their highest prices since early 2023. Potential Iranian retaliation could impact key global oil routes.

Oil prices escalated significantly on Friday following a more than $4 surge per barrel, marking the highest levels in nearly five months as tensions in the Middle East heightened. The price hikes came after Israel conducted strikes on Iranian targets, raising fears of oil supply disruptions in the region.

Brent crude futures jumped by $4.60, or 6.63%, hitting $73.96, while the U.S. West Texas Intermediate crude rose by $4.99, or 7.33%, reaching $73.03. This price surge echoes similar market reactions seen when Russia invaded Ukraine in 2022.

Analysts suggest the situation's impact on oil shipments remains uncertain, pending Iran's possible retaliation. The Strait of Hormuz, a critical chokepoint for global oil transport, could be affected, potentially influencing market stability amid a fragile global supply chain.

(With inputs from agencies.)