Oil surges more than 7% following Israeli strikes on Iran.

Oil prices surged more than $5 on Friday, reaching multi-month highs, following Israeli airstrikes on Iran that triggered retaliatory threats from Tehran. The escalating tensions have heightened fears of potential disruptions to oil supplies from the Middle East.

As of 1215 GMT, Brent crude futures had climbed $5.25, or approximately 7.6%, to $74.61 per barrel, after touching an intraday peak of $78.50—the highest level since January 27.

Meanwhile, U.S. West Texas Intermediate (WTI) crude rose by $5.57, or 8.2%, to $73.61 per barrel, having earlier hit $77.62, marking its highest since January 21.

These represent the largest single-day intraday gains for both benchmarks since 2022, when Russia’s invasion of Ukraine sent energy markets into turmoil.

Israel announced that its strikes targeted Iranian nuclear sites, ballistic missile production facilities, and military leadership. The operation, which Israel says may be prolonged, aims to prevent Iran from developing a nuclear weapon. In response, Tehran vowed severe retaliation.

READ MORE – Best Forex Brokers with the Highest Leverage.

Amid the rising geopolitical tension, former U.S. President Donald Trump called on Iran to negotiate its nuclear program to avoid “already planned” future attacks.

Despite the military escalation, Iran’s National Oil Refining and Distribution Company stated that oil refining and storage facilities remain intact and fully operational.

According to data released Wednesday by the U.S. Energy Information Administration (EIA), crude oil inventories fell by 3.6 million barrels during the first week of June, defying market expectations of a modest 100,000-barrel increase. The larger-than-anticipated drawdown points to robust demand and adds upward pressure on oil prices.