Oil prices surged more than 9% on Friday, shooting up to their highest levels in nearly five months after an attack on Iran by Israel.
The latest attack has intensified Middle East geopolitical tensions, fuelling investor anxiety over potential disruptions in global crude oil supply.
Brent crude futures rallied by $6.29, or 6.07%, to $75.65 a barrel by 03:15 GMT after soaring to an intraday high of $78.50—its strongest level since January 27. U.S. West Texas Intermediate (WTI) crude also climbed $6.43, or 9.45%, to $74.47, having reached $77.62, the highest since January 21.
The spike marks the largest intraday gain for both benchmarks since early 2022, when Russia’s invasion of Ukraine jolted energy markets and sent oil prices skyrocketing.
Israel confirmed that its military targeted Iranian nuclear sites, missile facilities, and senior commanders, warning that the operation aimed at halting Tehran’s atomic ambitions would be sustained.
ING analyst, Warren Patterson wrote in a note, “This has elevated geopolitical uncertainty significantly and requires the oil market to price in a larger risk premium for any potential supply disruptions,” analysts at ING led by Warren Patterson wrote in a note.