Brent and WTI futures rise sharply as investors assess risks to Middle East supply stability amid renewed tensions.
Crude oil prices climbed more than 2% in early trading after reports of fresh military clashes between US and Iranian forces in the Persian Gulf. The confrontation raises concerns over potential disruptions to oil shipments from the region, which accounts for roughly one-third of global seaborne crude exports.
Prior to the incident, Brent crude had traded near $85 per barrel, supported by OPEC+ production cuts and seasonal demand. Analysts had expected a modest uptick in volatility but not a geopolitical shock of this magnitude. The last comparable spike occurred in January 2020 following the US strike that killed Iranian General Qasem Soleimani.
Futures markets reacted swiftly, with front-month Brent contracts jumping $1.80 to $86.90, while WTI gained $1.65 to $83.20. Gold and safe-haven currencies also rallied as traders sought shelter from escalating risks.