Oil prices surge up after US-Israel strikes on Iran, crude towards $80/bbl

Oil surged towards $80 a barrel after the US and Israel launched coordinated strikes on Iran, escalating tensions in the Middle East and raising fears of supply disruptions through the critical Strait of Hormuz.

Brent futures climbed as much as 9.6 per cent to $79.78 a barrel in early trading, the highest since January 2025, while West Texas Intermediate rose 8.8 per cent to $72.95.

The weekend attacks targeted senior Iranian officials and key sites, prompting Tehran to retaliate with missile strikes against Israel and US-linked targets across the region. Iran was also reported to have attacked vessels transiting the Strait of Hormuz, a chokepoint that handles roughly 20 per cent of global oil consumption.

“With the retaliatory action now evolving to attacks on oil tankers in the Strait of Hormuz, the threat on oil supplies has substantially risen,” analysts at ANZ said in a note.

President Donald Trump signalled further military action in the coming days, underscoring the risk of prolonged conflict. The strikes mark the second major US operation against Iran since mid-2025, following earlier attacks on Tehran’s nuclear facilities.

Analysts at Texas Capital said crude could spike to $80 a barrel in the near term as markets price in sustained combat operations.

Separately, the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) agreed to raise output by 206,000 barrels a day at a meeting Sunday, a move that may cushion supply losses. Still, shipping disruptions in the Gulf could blunt the impact of higher production.

Attribution: Investing.com