Oil Prices Surge After Israeli Strikes on Iran Heighten Supply Fears

Crude oil prices recorded their steepest single-day surge in over two years on Friday, driven by escalating geopolitical tensions in the Middle East following Israeli airstrikes on Iran.
The global market reacted sharply to reports that Israel had targeted Iranian military sites, including nuclear and missile facilities. This aggressive move has intensified fears over the stability of global oil supply.
Industry analysts warned that traders are now pricing in a higher risk premium, anticipating potential supply disruptions. “Geopolitical uncertainty has risen significantly, and the oil market is adjusting to reflect the increased risk of disruption,” said Warren Patterson and his team at ING.
Across Asia, energy analysts and traders are closely watching for signs of Iran’s response. A Singapore-based trader noted, “It’s still early, but there’s growing concern that Iran could move to close the Strait of Hormuz,” a vital passage for global oil transport.
Iran, one of the world’s leading oil producers, exports the vast majority of its output to China, which consumes 15 percent of the global oil supply. These oil sales account for approximately 6 percent of Iran’s total economy and represent nearly half of the government’s annual expenditures.