The recent U.S. military strikes on Iran’s nuclear facilities, codenamed Operation Midnight Hammer, have sent shockwaves through global oil markets and raised fears of a potential energy crisis. The strikes, described as the largest B-2 bomber strike in U.S. history, targeted three key Iranian nuclear sites: Fordow, Natanz, and Isfahan, inflicting severe damage according to Pentagon officials.
Oil Prices Surge Amid Supply Concerns
In response to the strikes, global oil prices surged sharply, with Brent crude rising as much as 5.7% to nearly $80 per barrel and West Texas Intermediate climbing up to 6.2%, reaching around $77 per barrel according to market data. The escalation has raised fears of potential disruptions in the Strait of Hormuz, a vital shipping route through which around 20% of the world’s crude oil passes.
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Potential for Retaliation and Escalation
Market analysts warn that any Iranian retaliation or closure of the Strait could push oil prices significantly higher—potentially up to $120–$130 per barrel—intensifying volatility and threatening global energy security according to reports. Iran’s parliament has discussed closing the Strait in response to the attacks, heightening tensions in the region.
The strikes have also rattled broader financial markets, with S&P500 futures falling 0.3%, Dow futures dropping 0.3%, and Nasdaq futures slipping by 0.4% amid concerns over a widening Middle East conflict and its impact on energy supplies. As the world holds its breath, the escalating tensions between the U.S. and Iran raise critical questions about global energy security and the potential for further escalation in the volatile region.
