Oil prices jump over 6% after Israel strikes Iran’s nuclear and military sites, sparking global market volatility and safe-haven buying.
Crude oil prices experienced a dramatic jump on Friday following Israel’s military strikes on Iran’s nuclear and military sites, reigniting fears over potential disruptions to Middle Eastern energy supplies. U.S. benchmark West Texas Intermediate (WTI) futures spiked nearly 14% before settling around a 6% gain at $72.27 a barrel, while global Brent crude climbed approximately 5.9% to $73.48 a barrel.
The attacks prompted immediate concern over the stability of oil transport routes, particularly through the vital Strait of Hormuz, as Iran threatened retaliatory measures. “This has elevated geopolitical uncertainty significantly and requires the oil market to price in a larger risk premium,” noted ING’s commodities strategist Warren Patterson. This price movement marks one of the most significant intraday jumps since the early stages of Russia’s full-scale invasion of Ukraine.
The disruption rippled across global markets: stock indices in Asia, Europe, and the U.S. fell amid investor flight to safe-haven assets like gold and U.S. Treasuries. Gold prices rose, while airline stocks—already hit by higher fuel costs and airspace restrictions—suffered notable declines. European carriers such as Lufthansa and Air France-KLM each dropped 3–5% after rerouting and canceling flights over affected airspace.
This development underscores how geopolitical instability in the Middle East continues to exert pressure on global energy markets and broader financial sentiment.