Oil Prices Surge Amid Escalating Tensions Between Israel and Iran

Oil prices surged over 7% on Friday as geopolitical tensions soared following widespread Israeli strikes on Iran. This escalation, met with Iranian retaliation, fueled concerns over disruptions in the global oil supply chain. As a result, Brent crude futures spiked to $74.46 a barrel, reaching their highest point since January.

The rise in prices marks one of the most significant intraday movements since 2022, when energy markets were shaken by Russia's invasion of Ukraine. Israel's military actions targeted Iran's nuclear sites and missile factories, aiming to thwart Tehran's nuclear ambitions. Despite damage to Natanz, no radioactive contamination was reported.

Amid uncertainty, analysts are particularly wary of potential threats to the Strait of Hormuz, a crucial corridor for global oil transport. With a fifth of the world's oil moving through this region, any disruption could see prices soar up to $130 a barrel. The market watches closely as tensions simmer.

(With inputs from agencies.)