Oil prices surge 8% as US–Iran tensions shake global markets

ISLAMABAD – The global financial markets witnessed sharp volatility on Tuesday after reports of limited military clashes between the United States and Iran, triggering a strong reaction in energy and commodity trading. Energy benchmarks turned sharply higher as live market indicators showed widespread selling pressure across risk assets and a rapid shift in sentiment among traders. The escalation near the strategically sensitive Strait of Hormuz prompted immediate concerns over potential disruptions to global oil supply routes. Brent crude oil rose by 6.71 percent to reach 97.23 US dollars per barrel during intraday trading, moving close to the psychologically important 100-dollar mark. The sharp increase reflected heightened uncertainty in global supply expectations. In the US market, West Texas Intermediate (WTI) crude recorded an even steeper gain of 7.80 percent, climbing to 94.17 dollars per barrel, an increase of 6.81 dollars in a single trading session. The market analysts said the stronger premium in US crude reflected rising anxiety among buyers, who are increasingly seeking alternative supply sources outside the Middle East amid fears of possible disruptions in the Persian Gulf shipping lanes. The analysts added that the sudden escalation in geopolitical tensions has disrupted recent market stability, replacing cautious optimism with aggressive risk pricing across global energy markets.