Global oil prices soared more than 8 per cent on Friday after the conflict between the United States and Iran intensified, fuelling fears of supply disruptions from the Middle East and raising concerns over global energy security.
Brent crude, the international benchmark, climbed sharply to trade above $80 a barrel, while US West Texas Intermediate (WTI) also posted strong gains as investors reacted to renewed military action and the growing risk of a broader regional conflict.
The rally followed confirmation that US military operations against Iran had resumed, with President Donald Trump formally notifying Congress under the War Powers Resolution. The move has heightened concerns that the fighting could threaten oil production and shipping routes across the Gulf region.
Strait of Hormuz in focus
Much of the market’s attention is centred on the Strait of Hormuz, one of the world’s most important energy chokepoints. Nearly one-fifth of global oil supplies pass through the narrow waterway, making any disruption a major risk for international markets.
Analysts warned that any attempt to restrict or disrupt tanker traffic through the strait could tighten global crude supplies and push prices even higher.
Investors seek safe havens
The sharp rise in oil prices triggered broader market volatility, with investors moving towards traditional safe-haven assets such as gold and the US dollar. Airline stocks and other sectors heavily dependent on fuel prices came under pressure as traders assessed the economic impact of sustained higher energy costs.
Energy analysts said the latest spike reflects mounting geopolitical risk rather than changes in underlying supply and demand fundamentals.
Markets brace for further volatility
Oil traders are closely monitoring developments in the Middle East, particularly any signs of further military escalation involving regional powers. Additional sanctions, attacks on energy infrastructure or disruptions to shipping lanes could trigger another round of price increases.
While global crude supplies remain adequate for now, analysts cautioned that prolonged conflict between the US and Iran could keep energy markets on edge and sustain elevated oil prices in the weeks ahead.
