Oil Prices Soar Over 8% After Israel Strikes Iran – Rising Supply Risks in the Middle East

Global oil prices surged more than 8% early Friday after Israel launched airstrikes on Iranian military facilities without U.S. support. This latest escalation in the Middle East has intensified fears of supply disruptions from one of the world's most critical oil-producing regions.

Details of the Attack and Global Response

Israeli Prime Minister Benjamin Netanyahu confirmed that Israel targeted key components of Iran’s nuclear and ballistic missile programs, including enrichment facilities in Natanz. The Israeli government stated that operations would continue "until the threat is entirely neutralized."

The U.S. clarified it was not involved in the strikes. Secretary of State Marco Rubio warned Iran against retaliating by attacking U.S. personnel or interests in the region.

Market Impact and Energy Agency Response

The International Energy Agency (IEA) said it is monitoring the situation closely and is prepared to release oil from its 1.2 billion barrel emergency reserve if necessary. However, analysts note that any retaliatory move from Iran—such as attacking oil tankers or obstructing traffic in the Strait of Hormuz—could trigger a full-blown energy crisis.

Will Iran Retaliate?

Energy analyst Andy Lipow suggests Iran’s next move could have massive implications for global fuel prices, particularly in the U.S., where inflation is already being driven by rising energy costs.

At present, there are no reports of direct damage to Iran’s oil infrastructure, and many experts believe a full closure of the Strait of Hormuz remains unlikely, as it would also hurt Iran’s largest customer: China.

What Lies Ahead for Oil Markets?

While no physical supply has been disrupted yet, the heightened geopolitical risk is pushing energy markets into a state of extreme volatility. Investors fear the conflict may escalate further and draw in other nations, risking long-term supply constraints.

Moreover, the current oil price spike is expected to weigh heavily on the global economy, especially as many countries continue to battle high interest rates and persistent inflation.

Gain a competitive edge with up-to-date market intelligence from InfoFinance – follow us for the latest insights.