Overview
- Brent rose about 3.7% to roughly $87.33 a barrel and U.S. WTI climbed about 4% to near $82.09 as traders reacted to the escalation in U.S.-Iran military exchanges.
- Market participants said they added a geopolitical risk premium because any widening of the clash could threaten crude moving through the Strait of Hormuz, a key global route for oil exports.
- Gains spread across energy markets, with Middle East Murban crude, U.S. gasoline futures, European natural gas and Asian LNG benchmarks all recording rises.
- Global equity indexes opened lower as investors moved away from riskier assets while energy companies posted gains on higher crude prices.
- Analysts warn sustained prices near $90 would raise import bills, deepen current-account deficits and push inflation higher in oil-importing countries such as Pakistan, while physical risks and insurance constraints keep Gulf flows fragile.