Oil Prices Surge as Middle East Conflict Sparks Market Jitters

Oil markets surged on Friday after hostilities involving Israel and Iran, sending Brent crude up over 10% at one point before closing the day 7% higher at $74.23 per barrel. 

While that’s still more than 10% below prices seen a year ago, and well beneath the triple-digit peaks following Russia’s 2022 invasion of Ukraine, the market's sensitivity to fresh geopolitical risks in the Middle East was clear for all to see. 

Energy traders are now watching closely to see whether the escalation will threaten infrastructure or shipping routes, particularly through the Strait of Hormuz, which carries about 20% of the world’s oil supply.

The ripple effect hit global equities. Japan’s Nikkei slipped 0.9%, London’s FTSE 100 closed 0.39% down, and Wall Street also turned risk-off: the Dow lost 1.79%, while the S&P 500 fell 0.69%. 

In contrast, safe-haven assets rallied. Gold rose 1.2% to $3,423.30 an ounce, its highest level in nearly two months, and the Swiss franc gained ground. Analysts warned that continued escalations could spike Brent crude to the $80–$100 range.

What Does This Mean for Me?

With over a dozen tankers moving through the Hormuz chokepoint at any given time, any sustained threat could force a significant repricing of global oil. 

Markets now enter a watchful phase, weighing whether this was a short-lived flare-up or the opening moves of a much bigger supply disruption.