Oil prices surged by as much as 10 per cent as markets opened in Asia, after US and Israeli strikes on Iran heightened fears of a wider conflict in the Middle East and potential disruption to global energy supplies.Brent crude and Nymex light sweet crude both leapt sharply in early trading on Monday, before easing slightly. Brent rose more than 12 per cent at one stage to around $82 a barrel, having settled at just over $73 on Friday. By mid-morning in Asia, it was trading close to $79.30, up nearly 9 per cent. US crude climbed about $8, or 12 per cent, to roughly $75 a barrel, while West Texas Intermediate was up around 8 per cent at about $72.
The spike adds to an already strong year for oil, with international benchmark prices having climbed roughly 20 per cent since January. Analysts warned that further escalation could drive energy costs even higher, depending on how Tehran responds and whether supply routes are affected.Particular concern surrounds the Strait of Hormuz, the narrow entrance to the Persian Gulf through which around 15 million barrels of crude oil pass each day — about a fifth of global supply, according to Rystad Energy. Tankers using the strait transport oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates and Iran. Reports of attacks on vessels in the area have raised fears that shipments could slow or halt altogether, restricting exports and pushing up crude and petrol prices worldwide.Jorge León, senior vice-president of geopolitical analysis at Rystad, said markets were focused less on theoretical spare capacity and more on whether oil could physically move through the Gulf. “If flows through the Gulf are constrained, additional production will provide limited immediate relief,” he warned.Meanwhile, US stock futures fell more than 1 per cent, while shares in major oil companies such as Exxon and Chevron gained about 2 per cent.The conflict between Iran, the United States and Israel has escalated into one of the most serious Middle East crises in years, with coordinated US-Israeli air and missile strikes across Iran triggering extensive retaliation. Supreme Leader Ayatollah Ali Khamenei has been confirmed dead after the initial offensive, prompting Tehran to launch missiles and drones at Israeli and US targets across the Gulf and into neighbouring states. Casualties have mounted, infrastructure and airspace disruptions are widespread, and global markets are reacting to the heightened risk of prolonged hostilities. International pressure for de-escalation remains intense, even as Iran vows vengeance and the fighting continues.
