Brent Crude Jumps To $85 As US-Iran Conflict Sends Oil Markets Higher

Oil prices surged on Friday, heading towards their biggest weekly gain since April as escalating tensions between the United States and Iran raised concerns over potential disruptions to global energy supplies. Brent crude traded near $85 a barrel, putting the international benchmark on track for a weekly increase of nearly 12%, while West Texas Intermediate (WTI) crude climbed above $79 a barrel. The sharp rise in oil prices came as markets reacted to renewed military action between Washington and Tehran. The United States launched another wave of strikes on Iran on Thursday, intensifying fears that the conflict could affect key oil-producing regions and disrupt critical shipping routes.

Investors have been closely monitoring developments around the Middle East, where any escalation could have significant consequences for global energy markets. The latest surge followed reports that strikes had hit an oil tanker near Iran’s main export terminal, increasing concerns about the safety of vessels operating in the region. Iran’s major oil infrastructure and surrounding waterways remain under close watch, as the country plays a significant role in global energy supply chains. Any prolonged disruption could put additional pressure on crude prices. Market sentiment was further affected by reports that Tehran had instructed Yemen’s Houthi rebels to close the Bab el-Mandeb Strait if Iranian power infrastructure came under attack.

The strategic waterway connects the Red Sea with the Gulf of Aden and serves as a major route for international trade, including energy shipments from the Middle East. A closure or disruption of the passage could create further uncertainty for oil markets. The Bab el-Mandeb Strait is considered one of the world’s most important maritime chokepoints, alongside the Strait of Hormuz, due to the volume of energy and commercial cargo that passes through the region. Any threat to these routes typically leads to concerns over supply shortages, higher shipping costs and increased volatility in global commodity markets.

Also Read: Oil Prices Retreat: Brent Crude Falls To $72, Wiping Out Iran War Surge

The latest oil rally marks a significant reversal from earlier market trends, when concerns over demand growth and rising production levels had limited price gains. However, geopolitical risks have once again become a major factor influencing crude prices, with traders prioritising potential supply disruptions over other market pressures. Analysts are closely watching whether the US-Iran conflict expands further and whether it affects oil production, exports or shipping activity across the region.

While current price movements are being driven largely by uncertainty, sustained military escalation could push crude prices higher if major supply routes or facilities are affected. Energy markets remain sensitive to developments in the Middle East, particularly because the region accounts for a substantial share of global oil production and exports. With Brent crude approaching levels not seen since earlier in the year, investors and governments are monitoring the situation closely to assess the impact on fuel prices, inflation and the broader global economy.

Also Read: Brent Approaches $80 As Middle East Tensions Rekindle Hormuz Shipping Risks And Oil Rally