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Global energy prices soared and markets plunged Friday following an attack on Iran’s nuclear facilities, intensifying fears of a wider Middle East conflict and compounding global economic pressures.
West Texas Intermediate crude surged more than 7% to nearly $73 per barrel, while Brent crude jumped nearly 8% to hit $75. In Europe, natural gas prices rose 3.23%, with July futures reaching €37.34 per megawatt-hour on the Amsterdam exchange.
The spike in prices triggered a broad flight to safe-haven assets. Gold rose 1.15% to $3,441.60 per ounce, while U.S. Treasury yields fell across maturities. The dollar rebounded slightly after an early dip, gaining 0.4%, though it remains down about 8% since the onset of former President Trump’s trade disputes.
“This crisis comes at an unfortunate time,” said Katrina El, Asia-Pacific economist at Moody’s Analytics, citing rising protectionism and slowing global growth. Analysts at Bloomberg Economics warned that prolonged energy price hikes could fuel inflationary pressures in the U.S., already elevated due to tariffs.
The escalation rattled investors, sending European markets lower and prompting concerns over possible disruptions in key energy transit points, particularly the Strait of Hormuz. JPMorgan analysts cautioned that oil prices could spike to $130 per barrel if tensions continue.
Florence Smith, energy analyst at Rabobank, noted risks to global energy supply, particularly if major exporters like Qatar, Oman, or the UAE are drawn into the crisis. The three nations supply roughly 18% of the world’s liquefied natural gas.
With markets on edge and geopolitical tensions high, investors and policymakers alike are bracing for continued volatility.
With information from Kathimerini.gr.
