Israeli attack on Iran sends oil prices soaring as much as 13%

Global oil prices have had their largest single-day percentage increases in years, reflecting fears that a wider conflict in the Middle East could lead to serious energy supply disruptions.

Global oil prices have had their largest single-day percentage increases in years, reflecting fears that a wider conflict in the Middle East could lead to serious energy supply disruptions. Brent crude, the global benchmark, was last up 4.3% at $72.4 a barrel on Friday. West Texas Intermediate, the US benchmark, jumped 5% to $71.4 a barrel, after gaining as much as 13% earlier in the day. According to Reuters, they are the biggest intraday gains for each benchmark since March 2022, a month after Russia launched a full-scale invasion of Ukraine. The surge illustrates “both immediate supply concerns and a growing sense that negative headlines could extend the timeline for escalation unlike prior Israel-Iran episode,” Ahmad Assiri, research strategist at Pepperstone, a financial services firm, wrote in a research note. In the equities market, US stock futures fell, sending investors retreating to traditional safe haven investments like gold. Dow futures dropped 1.3%, or over 540 points. S&P 500 futures and Nasdaq Composite futures were down even more, by 1.4% and 1.6%, respectively. Meanwhile, gold rose about 1% to $3,413.6 per troy ounce. Early on Friday, Israel launched an unprecedented attack against Iran’s nuclear and missile facilities, killing at least two of Iran’s top military commanders. Israeli Prime Minister Benjamin Netanyahu said in a televised address that the “targeted military operation” is expected to continue for “many days.” “This operation will continue for as many days as it takes to remove this threat,” Netanyahu said.