Global oil prices have jumped after Israel mentioned that it had struck an attack on Iran in a dramatic escalation of tensions in the Middle East. The price of the benchmark Brent crude rose by 10% shortly after the emergence of the news, making it the highest rise since January 2025.
Various traders are concerned about where the rise will lead them. The rise in oil prices has many factors contributing to it, one of them being supply concerns and geopolitical tensions. Heightened military activity and uncertainty in the region often lead traders to anticipate supply shortages, driving prices up. In order to adjust to fluctuations, traders usually take the lead in responding to market reactions, which results in providing solutions for the consumer.
The BBC mentions that the cost of crude oil affects everything from how much it costs to fill up your car to the price of food at a regular supermarket. After the initial jump, oil prices eased a little, but Brent crude was still up by more than 5%. It serves as a global benchmark for oil prices and is used to price two-thirds of the world’s crude oil. Yesterday’s closing price was about $74.47 per barrel. Despite Friday’s moves, oil prices are still 10% lower than the usual price. Following the invasion of Ukraine by Russia, oil prices soared well above $100 per barrel.
Japanese share prices fell across Asia and Europe on Friday. Japan’s Nikkei share index ended the day down 0.9%, while the UK’s FTSE 100 index was down 0.3% by lunchtime. Stock markets in the US also opened lower. The Dow Jones Industrial Average fell 1.5%, while the S&P 500 was down 0.8%.
Ermias Tilahun | Correspondent
