Oil Prices Soar Over 10% as Israel Strikes Iran, Sparking Global Supply Fears

Global oil markets surged dramatically on Friday, following confirmation that Israel had carried out a military strike on Iran, escalating an already volatile situation in the Middle East and sending shockwaves through financial markets.

Both Brent Crude and Nymex Light Sweet crude prices jumped by over 10%, reflecting fears that oil supply routes could be severely disrupted if hostilities deepen in the energy-rich region.

● Energy Markets on High Alert

Traders are particularly alarmed by the risk of Iran responding by targeting infrastructure or shipping in the Strait of Hormuz, a strategic chokepoint through which around 20% of the world’s oil passes daily.

“It’s an explosive situation, albeit one that could be defused quickly… or spiral into a broader war,” said Vandana Hari, energy analyst at Vanda Insights, in an interview with the BBC.

The Strait of Hormuz, flanked by Iran to the north and Oman and the UAE to the south, is a vital artery for global oil and gas transportation. Dozens of oil tankers travel through it daily, linking Gulf producers with major markets in Asia, Europe, and beyond.

● Fear of Retaliation Looms

With no immediate Iranian response, markets are entering a “wait-and-see” mode, but experts say the risk premium on oil is likely to remain elevated for days, depending on how Iran chooses to respond.

“What we see now is a very initial risk-on reaction. But over the next day or two, the market will need to factor in where this could escalate to,” noted Saul Kavonic, head of energy research at MST Financial.

A direct Iranian counterstrike, or any move to block the Strait of Hormuz, could send prices skyrocketing even further, with ripple effects across global supply chains—from fuel prices at the pump to grocery store costs.

● Why It Matters to Consumers

Crude oil prices are a key driver of inflation, impacting transportation, manufacturing, and food prices. A sustained increase in prices could threaten economic stability in both developed and developing nations.

“When oil jumps this fast, inflation follows,” said one global energy economist.

Already facing economic headwinds, nations around the world are closely monitoring developments, with central banks and finance ministries bracing for the potential macroeconomic fallout.

● A Delicate Moment for Global Energy

This latest flare-up comes at a time when the world is grappling with post-pandemic recovery, climate transitions, and high interest rates. Any long-term instability in Middle East oil flows could derail fragile economic recoveries and stoke political tensions in oil-dependent economies.

As diplomatic channels scramble to de-escalate the crisis, the energy world holds its breath. All eyes are now on Tehran—and the Strait of Hormuz—as the next moves could determine the course of oil markets and global economic health in the days ahead.