Oil prices surge past $95 as US-Iran strikes intensify

Oil prices surged past $95 per barrel as US-Iran military strikes intensified, raising concerns about supply disruptions in the Middle East. The escalation follows a series of retaliatory attacks between the two nations, threatening key shipping lanes and oil infrastructure. Crude futures spiked sharply, with Brent and WTI both posting gains of over 3% in early trading. Analysts warn that a prolonged conflict could push prices above $100, impacting global inflation and energy security. The US has not ruled out further strikes, while Iran has threatened to close the Strait of Hormuz, a critical chokepoint for oil transit. Market participants are now pricing in a risk premium of $5-10 per barrel, with volatility expected to remain elevated.

Global Impact

Economically, a sustained oil price above $95 raises input costs for manufacturers and transport, feeding into core inflation and complicating central bank rate decisions. Politically, the US-Iran escalation risks drawing in regional proxies and allies, destabilizing Iraq and the Gulf states.