Oil prices soared on Friday after Israel launched air strikes against Iranian nuclear and military sites, raising fears of a major escalation in the Middle East.
Brent crude jumped 9% to $75.60 a barrel, briefly reaching $78.50 overnight, its biggest daily surge since the Covid recovery in 2020.
“The oil market has clearly reacted to the escalating tensions, and if prices hold at these levels it would mark the biggest daily gain since Covid lockdowns eased in 2020,” said Deutsche Bank’s Jim Reid.
Iranian state media reported that senior military leaders were killed in the strikes, while Israel vowed to continue operations. Iran warned of severe retaliation, fuelling further market anxiety.
Global markets were rattled, with S&P 500 and DAX futures both down 1.65%. Gold jumped 1.26% to $3,428 an ounce, while safe-haven buying pushed US 10-year Treasury yields down to 4.35%. The dollar index also stabilised after recent lows.
Attention now turns to Iran’s possible response and whether nuclear talks with the US can proceed as scheduled.