Oil prices surged more than $4 a barrel, reaching their highest levels in nearly five months following Israel’s airstrikes on Iran.
Brent crude futures increased by 6.63pc, while US West Texas Intermediate crude saw a rise of 7.33pc
Analysts are concerned about potential consequences for Middle East oil shipments and ongoing tensions in the region.
Approximately 18-19m barrels per day pass through the Strait of Hormuz, making its security critical for global oil supply.
U.S. Secretary of State Marco Rubio characterised the strikes as a “unilateral action,” asserting Washington’s lack of involvement.
A key question is whether the Iranian retaliation will be limited to Israel or if the leadership will seek to internationalise the cost of the action by targeting bases and critical economic infrastructure across the wider region. The market is worried about shutting off of the Strait of Hormuz,
