Oil prices surge 10% as US-Israel strikes on Iran rattle markets

Oil prices surged about 10% after reports that U.S. and Israeli forces conducted strikes on Iran, igniting fears of retaliation. Traders watched the Gulf region closely as the Strait of Hormuz—the critical waterway for a large share of the world's crude—once again emerged as a flashpoint. Benchmark grades climbed in early trading, with markets pricing in a risk premium tied to potential supply disruptions.

Analysts warned that the escalation could keep energy costs elevated for weeks, fueling broader market volatility. Stocks swung as investors reprice risk, while consumers in oil-importing nations could feel the effects at the pump and in rising transportation costs. Some market participants breathed a sigh of relief on rumors that supply routes could remain open, but the overall sentiment remained cautious.

India and other energy buyers are watching closely, with attention to whether stockpiles and emergency reserves could cushion imports if disruptions persist. The moment adds another layer to a year already shaped by inflation and supply-chain twists. Industry groups urged calm while diplomatic channels stay open to avert further escalation.

Looking ahead, traders will be listening for official statements from Washington, Tel Aviv, and Tehran, as well as any new moves around the Hormuz chokepoint. The duration of elevated prices will hinge on next steps in diplomacy, possible sanctions, and the likelihood of further military action.

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