Oil surges to biggest single-day gain since 2022 as Israel-Iran tensions escalate

Oil prices spiked higher on Friday after Israel attacked Iranian nuclear and military facilities, rattling global markets and stoking fears of a broader conflict in the region.

US oil and Brent crude oil, the global benchmark, surged to their biggest single-day gains since March 2022, weeks after Russia invaded Ukraine. The oil benchmarks also posted their biggest weekly gains since October 2022.

US oil surged 7.26%, settling at roughly $72.98 per barrel Friday. Brent gained 7%, settling at around $74.23 per barrel. US oil and Brent had surged as much as 14% and 13%, respectively, earlier in the day.

“For markets, the focus is now turning to how the situation might escalate,” Jim Reid, a research strategist at Deutsche Bank, said in a Friday note.

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Iran later Friday retaliated against Israel, launching hundreds of ballistic missiles.

“The main channel by which this escalation could impact the global economy would be through higher oil prices,” analysts at Capital Economics said in a Friday note.

A rise in global oil prices could also reignite inflation, complicating the outlook for policymakers like the Federal Reserve.

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