Oil prices climb 3% as overnight military exchanges between Israel and Iran heighten supply disruption fears in the Middle East.
Brent crude oil prices surged to nearly USD 96 per barrel after Israel launched overnight air strikes inside Iran, escalating regional tensions. The move follows Iran’s ballistic missile attack on northern Israel, marking the first direct exchange since April’s ceasefire collapsed.
Markets had previously hoped for a broader deal to reopen the Strait of Hormuz, a critical chokepoint for global oil flows. The latest hostilities dim those prospects, amplifying concerns over supply disruptions amid already tight inventories.
The spike aligns with broader risk sentiment ahead of key US CPI data and ECB policy decisions. US President Donald Trump indicated efforts to de-escalate, but oil’s rally reflects heightened geopolitical premiums.