Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Global crude oil prices soared by over 8% on Friday, marking the largest single-day increase in three years, as escalating tensions between Israel and Iran raised fears of disruptions to Middle Eastern oil supplies. Brent crude futures settled at $74.23 per barrel, up 7.02%, after peaking at $78.50, while U.S. West Texas Intermediate (WTI) crude closed at $72.98, a 7.62% rise, according to market reports.
The price spike followed Israel’s airstrikes on Iranian nuclear and military facilities, described as a “preemptive strike” codenamed “Rising Lion,” targeting uranium enrichment sites and military command centers. Iran retaliated with a barrage of up to 150 ballistic missiles aimed at Israel, causing at least 40 injuries. The conflict intensified on Saturday when Israeli strikes reportedly hit Iran’s energy infrastructure, including the South Pars gas field, sparking a massive fire and partially halting production.
Analysts warn that further escalation could push oil prices toward $90 per barrel, particularly if Iran targets the Strait of Hormuz, a critical passage for 20% of global oil and a significant portion of liquefied natural gas exports. Iran’s oil ministry, however, claimed its Tehran refinery remained operational despite reported blazes.
The conflict has already disrupted global markets, with stock indices like the Dow Jones and S&P 500 falling sharply and investors flocking to safe havens like gold. Experts caution that prolonged hostilities could exacerbate global inflation, impacting everything from fuel to food prices, as Iran’s role as a major oil supplier to China and its strategic position near key shipping routes amplify the risks.
As the situation unfolds, the International Energy Agency is preparing to tap global oil reserves to mitigate potential shortages. Meanwhile, U.S. gas prices are expected to rise in the coming weeks, with analysts predicting modest increases unless further damage to Iranian infrastructure or regional shipping routes occurs.
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