Oil prices jumped significantly after Israeli airstrikes reportedly targeted Iran’s key nuclear facilities at Natanz and Arak. The strikes came amid growing regional tensions, prompting concerns about potential disruption to global oil supplies. Investors reacted swiftly, sending prices higher in anticipation of further instability.
On Thursday, Brent crude rose 1.15% to $77.58 per barrel, while U.S. West Texas Intermediate (WTI) increased 1.48%, reaching $76.25 per barrel. Prices had fluctuated earlier in the day, but ended higher as fears of conflict grew. These are the most notable price gains since early May.
According to analysts, markets are now caught between two possibilities — a wider military response or a push for diplomatic talks. “The market is still under the shadow of what comes next — U.S. military action or negotiations,” said Tony Sycamore of IG Markets. Goldman Sachs also warned that prices may jump further, estimating a $10-per-barrel geopolitical premium.
Experts pointed out that Iran could target oil tankers or energy infrastructure in the Gulf if it feels directly threatened. The Strait of Hormuz, a narrow waterway between Oman and Iran, is responsible for transporting over 19 million barrels of oil and petroleum products daily — nearly 20% of global consumption. Iran’s current oil output stands at 3.3 million barrels per day.
Meanwhile, the U.S. Federal Reserve held interest rates steady but hinted at possible cuts later this year. Lower interest rates typically boost economic activity, which can raise oil demand. However, inflation may rise as well. Overall, the oil price surge reflects uncertainty in both the geopolitical and economic landscape, with potential ripple effects across global markets.