Brent crude and U.S. benchmark prices climbed sharply as escalating military conflict in the Middle East rattled markets, driving crude toward and above the $80 per barrel mark on concerns over supply disruptions.
The surge followed coordinated United States and Israeli strikes on Iran and subsequent retaliatory actions by Tehran, which have effectively stymied tanker traffic through the Strait of Hormuz, a chokepoint for roughly 20 % of global oil shipments, intensifying fears of a broader energy supply shock.
Brent crude futures rose to about $80.89 a barrel, with West Texas Intermediate climbing to roughly $73.78, marking the biggest multi‑day increase in years as traders priced in heightened geopolitical risk and potential further disruptions if the conflict persists.
There are warnings from analysts that continued instability could push Brent significantly higher, potentially into triple‑digit territory if key shipping routes remain constrained.
The market reaction extended beyond energy prices. Global equities weakened as investors reevaluated risk, while safe‑haven assets like gold gained ground.
Diesel and gasoline futures in the U.S. also rose sharply, reflecting the knock‑on effect of higher crude costs. Insurance firms have pulled back coverage for tankers in the region, and some key regional refineries have faced operational interruptions linked to conflict‑related attacks.
Analysts emphasize that the severity and duration of the conflict, along with access through the Strait of Hormuz, will be decisive in setting future oil price trajectories, with markets bracing for continued volatility as the situation evolves.
Source: The sun.ng
