Oil markets are on high alert as Brent crude spiked to $81.50 per barrel—its highest in five months—after Iran vowed “everlasting consequences” in response to U.S. airstrikes on its nuclear facilities. Though prices later settled around $77.79, the sharp rise underscores growing geopolitical tension.
Two key threats are rattling investors: Iran’s approval of a potential closure of the Strait of Hormuz—a strategic waterway responsible for nearly 20% of global oil shipments—and the possibility of targeted retaliatory attacks on U.S. assets or oil infrastructure.
The uncertainty has sent shockwaves through global markets, triggering volatility in currencies, equity futures, and safe-haven assets like gold. Analysts warn that while no actual supply disruption has occurred yet, the risk premium on oil has risen sharply. Goldman Sachs cautions that a prolonged standoff could send Brent crude soaring past $100, with worst-case scenarios predicting $150.
As the world watches Iran’s next move, fears of a wider conflict and global energy crisis loom large, threatening to ripple through economies already grappling with inflation and supply chain stress.
