Oil prices surged sharply in Asian markets on Friday after Israel launched a large-scale preemptive airstrike on Iran, raising fears of a wider Middle East conflict and potential disruptions to global oil supply.
As of 21:22 ET (01:22 GMT), Brent crude futures for July delivery spiked 8.5% to $75.15 per barrel—the highest level since early February. West Texas Intermediate (WTI) crude futures rose 8.4% to $73.68 per barrel, marking a significant jump driven by mounting geopolitical tensions.
According to media reports, Israel carried out airstrikes on “dozens” of Iranian military and nuclear facilities early Friday. Explosions were reported across Tehran, and Iranian state media confirmed the activation of its air defense systems. Israel's Defense Minister Israel Katz warned of an imminent retaliatory missile and drone attack from Iran, potentially targeting Israeli civilians.
The United States emphasized its non-involvement in the operation. Two U.S. officials told Reuters that Israel acted independently, and CNN reported that President Donald Trump held an emergency cabinet meeting in response to the situation.
The sudden escalation between Israel and Iran has injected a fresh geopolitical risk premium into oil markets. Traders are now pricing in the possibility of major supply disruptions, especially if the conflict impacts key oil-producing regions or transport routes.
Friday’s dramatic oil rally highlights the market’s sensitivity to geopolitical developments in the Middle East, a region critical to global energy flows. The ongoing uncertainty is expected to keep crude prices volatile in the near term, with energy traders closely watching for further retaliatory moves from Iran or wider regional fallout.