Mideast Tensions Ignite Oil Price Surge to Multi-Month Highs

Oil prices soared by nearly 9% on Friday, touching multi-month peaks after Israel launched strikes against Iran. The actions sparked Iranian retaliation, inciting fears of disruptions in oil supplies from the Middle East. Brent crude futures surged $6.19, reaching $75.55 a barrel, hitting an intraday high not seen since January 27.

Meanwhile, U.S. West Texas Intermediate crude climbed $6.22 to $74.26, marking its highest point since January 21. The magnitude of Friday's gains echoed the spikes witnessed in energy prices due to Russia's invasion of Ukraine in 2022.

Amid escalating tensions, concerns arose about the Strait of Hormuz's security, crucial for global oil flow. SEB analyst Ole Hvalbye emphasized the potential risk to the strait, though it remained unaffected. With significant oil consumption moving through this channel, any lasting disruption could severely impact global markets.

(With inputs from agencies.)