Middle East Tensions Ignite Oil Price Surge
Oil prices surged over $5 amid Middle East tensions after Israel struck Iranian targets. The conflict has raised concerns over potential disruptions in oil supply through the Strait of Hormuz, a key waterway. Analysts suggest the oil rally might be temporary due to geopolitical uncertainties.
Global oil prices leaped to multi-month highs on Friday, climbing over $5, after Israel's military strikes against Iran ignited fears of disruptions in Middle Eastern oil supplies. Brent crude futures rose $5.25 to $74.61 per barrel, while U.S. West Texas Intermediate saw an increase of $5.57, hitting $73.61 per barrel.
The escalation stems from Israel targeting Iran's nuclear facilities in a prolonged operation intended to thwart Tehran's atomic ambitions. Iran vowed a stern response, escalating the geopolitical stakes. Notably, U.S. President Donald Trump urged Iran for a deal to prevent further attacks.
Despite concerns, Iranian oil infrastructure remains unscathed, with SEB analyst Ole Hvalbye noting the Strait of Hormuz has not been impacted. Analysts are divided on the longevity of the oil price surge, with some predicting limited duration while others assess broader geopolitical risks.
(With inputs from agencies.)
Google News