Oil prices surged sharply on Friday, hitting multi-month highs as escalating conflict between Israel and Iran stoked fears of widespread disruption to global energy supplies. Brent crude jumped over 7.6% to settle at $74.65 per barrel, while U.S. West Texas Intermediate crude rose 7% to $73.42 per barrel. The sudden spike reflects growing concerns that the military confrontation could threaten key oil infrastructure and choke vital shipping lanes like the Strait of Hormuz.
The surge in oil prices triggered a sell-off on Wall Street, with major U.S. stock indices dropping amid investor anxiety over the broader geopolitical fallout. In a flight to safety, gold prices climbed to monthly peaks above $3,440 per ounce, while cryptocurrencies such as Bitcoin fell nearly 1%, signaling heightened market caution.
U.S. motorists are bracing for higher gasoline prices in the weeks ahead, with analysts forecasting increases of 10 to 25 cents per gallon during the critical summer travel season. Although current pump prices remain below last year’s levels, the conflict threatens to reverse recent gains in fuel affordability. Should tensions escalate further, crude oil could surpass $100 per barrel, pushing gasoline prices sharply higher and impacting consumers worldwide.
This market turbulence underscores the far-reaching economic risks posed by the Israel-Iran crisis, highlighting how regional instability can swiftly ripple through global energy markets and financial systems.
