Oil prices surged sharply in early Asian trading on Monday following U.S. airstrikes targeting key Iranian nuclear facilities, intensifying fears of major supply disruptions in the Middle East. Brent crude briefly hit $81 per barrel before easing to around $79, while WTI rose by 2.5% to $73.84, after initially gaining nearly 4%.
Reports suggest Iran may retaliate by targeting U.S. military bases in the region or attempting to block the Strait of Hormuz — a critical chokepoint for global oil transport. Due to uncertainty over the scale of escalation and future U.S. actions, markets later gave back some of their initial gains.
Analysts at ANZ described the U.S. strikes as a "significant escalation" and warned that, if tensions continue to rise, oil prices could average between $90 and $95 per barrel. The renewed conflict between Israel and Iran has now entered its 11th day, and any further retaliatory steps could trigger new sanctions or broader disruptions to the global crude supply chain.