Oil Prices Surge as U.S. Bombs Iranian Nuclear Sites, Raising Global Supply Fears
Oil prices soared in early Monday trading after the United States formally entered the conflict between Israel and Iran, launching strikes on Iranian nuclear facilities. The escalation has cast a dark cloud over the outlook for global oil supply and intensified fears of a broader regional crisis.
Brent crude, the international benchmark, surged as much as 5.7% to $81.40 per barrel when markets reopened on Sunday night, while West Texas Intermediate (WTI) rose 3.2% to $76.20.
The sharp move follows days of mounting tension, with investors now bracing for Tehran’s response. Among the most alarming developments: Iran’s parliament voted on Sunday to block the Strait of Hormuz, a vital shipping route for around 20% of global oil. Although not yet final, such a move would be deeply inflationary and severely disrupt supply chains.
Oil had already been climbing, having gained roughly 10% since Israel launched strikes on Iranian energy infrastructure ten days ago. On Friday, Brent closed at around $77 a barrel.
Market Reaction
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Stock futures turned lower ahead of Monday’s open, with the Dow Jones Industrial Average and S&P 500 both down 0.4%.
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In Asia:
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Hong Kong’s Hang Seng slipped 0.5%
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Tokyo’s Nikkei was broadly flat
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Australia’s S&P/ASX 200 eased 0.2%
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Flight to Safety
Geopolitical risk also triggered a shift to safe-haven assets:
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Spot gold climbed 0.4% to $3,380.72 per ounce, reflecting rising demand for defensive plays amid global uncertainty.
Markets are now closely watching Iran’s next move and any further signals from Washington, with the potential for major energy shocks and renewed volatility across asset classes.
