Oil Prices Surge Amid US-Israel Strikes on Iran

Oil prices have risen sharply following coordinated military strikes by the United States and Israel on Iran, raising concerns over potential disruptions to Middle Eastern oil supplies.

Brent crude, the international benchmark, closed at $72.87 per barrel on Friday, marking a seven-month high. This increase reflects market apprehension about the stability of oil shipments from the region.

Iran, a significant oil producer, exports approximately 1.6 million barrels daily, primarily to China. Any disruption in this supply could prompt Chinese refineries to seek alternative sources, potentially driving global prices higher.

The Strait of Hormuz, a critical chokepoint through which about 20% of the world's oil passes daily, remains a focal point. Analysts suggest that while Iran has previously threatened to close the strait, such an action would also impede its own exports, making it an unlikely course of action.

Market analysts indicate that limited military strikes could lead to a temporary price increase of $5 to $10 per barrel. However, a broader conflict affecting oil infrastructure or shipping routes could push prices above $90 per barrel, with corresponding increases in fuel costs for consumers.

The situation remains fluid, with traders closely monitoring developments and potential impacts on global oil supply and prices.