Crude futures spiked as much as 13 per cent Thursday evening after Israel launched airstrikes on Iran without United States backing, raising fears of supply disruptions in the oil-rich Middle East

As of 07:17 a.m. London time, global benchmark Brent crude for August delivery had surged 7.05 per cent to $74.25 per barrel, while U.S. West Texas Intermediate for July delivery rose 7.76 per cent to $73.32 per barrel, according to CNBC.

Israeli Prime Minister Benjamin Netanyahu announced that Israel launched a “targeted military operation” against Iran’s nuclear and ballistic missile program.

“This operation will continue for as many days as it takes to remove this threat,” Netanyahu said.

The escalating conflict has heightened fears over oil supply disruptions from Iran and other regional producers who could be pulled into the crisis.

According to OPEC’s May Monthly Oil Market Report, Iran produced 3.305 million barrels per day in April, based on independent analyst assessments.

Oil investors are increasingly worried that Iran may retaliate by targeting Israeli or American assets, potentially triggering a broader military conflict and disrupting global oil supply, said Andy Lipow, president of Lipow Oil Associates.

“Iran Aware of Political Stakes for U.S., Analyst Says

“Iran knows full well that President Donald Trump is focused on lower energy prices,” Lipow told CNBC.

He added that any Iranian move to disrupt Middle Eastern oil supplies—driving up gasoline and diesel prices—would be politically damaging for the U.S. president.

Oil markets have mostly overlooked geopolitical threats over the past year, but the latest developments serve as a “wake-up call,” said Saul Kavonic, head of energy research at MST Marquee.

He noted the risks are now more “tangible and imminent” than many investors had anticipated.

““But the attacks will see some form of retaliation, which could easily – even if unintentionally – spiral out of control,” said Kavonic.

He warned that Thursday’s airstrikes may embolden hardline factions within Iran, increasing the likelihood of further escalation.

Rising tensions in the Middle East have renewed fears that Iran could target the Strait of Hormuz—a strategic chokepoint linking the Persian Gulf and Gulf of Oman—through which about 20% of the world’s oil supply flows. Any disruption there could have severe global energy implications.