Middle East Tensions Send Oil Prices Soaring — Global Markets on Edge

Rising tensions in the Middle East following Israeli airstrikes have sent shockwaves through financial markets, with global oil prices soaring and investors growing increasingly nervous about the potential for further escalation. Brent crude jumped more than 14% at its peak, briefly touching $74 per barrel, while West Texas Intermediate (WTI) surged nearly 8%. The dramatic rise underscores growing worries that conflict in a key oil-producing region could disrupt energy supplies and undermine economic stability. The conflict has forced traders and investors to reassess their portfolios and pricing models. Safe-haven assets — including gold, the US dollar, and government bonds — received a boost as investors sought refuge from riskier stocks. Meanwhile, sectors directly tied to energy — from oil companies to services providers — saw their stocks rise on the back of higher prices, while industries that rely on petroleum, such as airlines and transportation companies, fell on worries about soaring operational costs. Analysts warn that further escalation in the Middle East could drive oil prices up to $150 a barrel, adding pressure to already-fragile economic growth and threatening to undermine central banks’ ability to control inflation. The market is now closely watching diplomatic signals and policy responses in a rapidly developing situation.

ECONOMICS