Oil prices surge as potential US strike on Iran sparks supply fears

11:42

By: Azzat Manal

Oil prices surge as potential US strike on Iran sparks supply fears

Oil prices climbed sharply on Thursday after reports that the White House had asked the Pentagon to prepare potential options for strikes against targets in Iran, raising concerns about renewed instability in the Middle East and possible disruptions to global energy supplies.

Brent crude, the international benchmark, rose 3.6% to $103.80 a barrel, while US West Texas Intermediate gained 3.4% to reach $91.27. The sharp move reflected growing uncertainty among investors over the potential consequences of military action involving Iran.

Markets remain particularly sensitive to developments in the Middle East because the region plays a major role in global oil production and transportation. Any escalation that threatens production facilities, shipping routes or key energy infrastructure could place additional pressure on crude supplies and push prices higher.

The reported request for military options comes ahead of the US midterm elections, adding a political dimension to an already tense geopolitical situation. Investors are closely watching Washington's next moves as they assess the likelihood and potential scale of any military operation.

Higher oil prices could also complicate efforts to contain inflation. Energy costs have a broad impact on households and businesses, affecting transportation, manufacturing and the prices of goods and services.

The latest rise comes as oil markets remain highly responsive to geopolitical risks, with traders weighing concerns over supply disruptions against expectations for global demand. A prolonged escalation could increase volatility across energy markets and put further pressure on economies that depend heavily on imported fuel.

For now, the reported military preparations do not necessarily mean that a strike will take place. However, the possibility alone has been enough to prompt investors to reassess the risks facing the global oil market and anticipate potentially higher energy costs.