Oil Prices Surge Amid Middle East Tensions

Oil prices soared 6% due to escalating U.S.-Israel conflict with Iran, disrupting Middle East energy shipments. Brent futures hit their highest since 2024, as Iraq cut output; Iran's retaliation risks supply. Insurers cancelled coverage for ships, spiking freight rates. Energy infrastructure heavily impacted.

Oil prices experienced a significant surge, climbing approximately 6% to levels not seen since 2024, amid escalating tensions between the U.S.-Israel and Iran. The conflict has disrupted critical energy shipments from the Middle East and heightened concerns over an extended period of instability.

With Brent futures increasing by $4.70, reaching $82.44 a barrel, and West Texas Intermediate climbing by $4.43 to $75.66, the market is responding to fears of prolonged conflict. Iraq's reduction in crude production, driven by storage constraints, adds further volatility to the situation.

The ongoing conflict has led to significant risks for U.S.-operated energy assets, particularly around the Strait of Hormuz. Amid Iran's retaliatory strikes in the Gulf, insurance cancellations for vessels have escalated shipping rates, affecting global oil and gas markets. Nations like India and Indonesia are exploring alternative energy suppliers as refineries face disruptions.

(With inputs from agencies.)