Oil Market Turmoil: Middle East Tensions Spark Price Surge

Despite Israeli air strikes that missed Iranian oil sites, oil prices rose about 6% amid Middle East tensions. Analysts remain apprehensive about potential disruptions in oil supplies through the Strait of Hormuz, a critical global chokepoint. Meanwhile, markets swung toward safe havens like gold and the USD.

Amid rising geopolitical tensions in the Middle East, oil prices soared on Friday, despite Israeli air strikes that avoided major Iranian oil sites. Brent crude futures saw a 5.9% increase, reaching $73.47 a barrel, while U.S. West Texas Intermediate crude rose by 6.4% to $72.42.

Israel's targeted attacks on Iran's nuclear facilities brought fear of potential disruptions in the Strait of Hormuz, a principal passageway for global oil supplies. Analysts warned that any hindrance in this crucial chokepoint could have dire consequences for global oil markets.

Despite the fears of escalation, Israeli forces have not yet targeted Iranian energy infrastructures, leaving a potential for retaliatory attacks looming. In financial markets, investors turned to safe havens amid the uncertainty, causing a dip in stock markets and a rise in gold and USD demand.

(With inputs from agencies.)