Oil prices surged on Friday after Israel launched a series of strikes in Iran, killing the country’s top military commander and fuelling fears of a broader conflict in the Middle East.
Brent crude soared as much as 13% to over $78 a barrel — its sharpest intraday gain since the onset of the Ukraine war in March 2022 — as global markets reacted to the escalating tensions.
Gold also rallied, rising up to 1.7% and nearing record highs, while the US dollar rebounded from a three-year low as investors rushed into traditional safe-haven assets.
The Israeli offensive reportedly targeted key locations, including Iran’s Natanz nuclear enrichment facility. Among those killed was General Mohammad Bagheri, Iran’s chief of military staff.
Iran vowed a “harsh and decisive” response, further intensifying market jitters and driving oil prices higher, reversing the year’s previous losses.
Warren Patterson, head of commodities strategy at ING, said: “We are back in an environment of heightened geopolitical uncertainty, leaving the oil market on tenterhooks and requiring it to start pricing in a larger risk premium for any potential supply disruptions.”
