Global oil prices spiked and markets tumbled after Israel launched major air strikes on Iran, targeting nuclear sites and military leaders, aimed at halting Iran’s nuclear ambitions. Iran swiftly retaliated with drone attacks on Israel, prompting Israel to declare a nationwide state of emergency.
The conflict caused oil prices to soar, with Brent crude rising nearly 9% to above $75 a barrel and U.S. crude rising over 9% to above $74, marking the largest intraday move since the energy shocks following Russia’s invasion of Ukraine in 2022. Oil futures were up 13% at one point, the highest since January. Analysts warned that supply disruptions could push Brent crude prices to $100 or more, but that increased output by other producers could limit price spikes. Meanwhile, Iran reported that its oil infrastructure remained intact and that the flow of oil remains steady.
Stock markets across Asia and Europe tumbled amid fears of prolonged conflict, while gold neared record highs and the U.S. dollar strengthened as investors moved to safe-haven assets. Analysts warn that the conflict could keep inflation high and hurt global growth.
