Global oil prices surged after strikes in the Middle East by the US and Israel against Iran over the weekend. Approximately 15 million barrels of crude oil per day pass through the critical Strait of Hormuz, accounting for about 20% of the world’s oil supply. This chokepoint is vital for countries like Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the UAE, and Iran.
West Texas Intermediate crude oil, a US-produced variant, saw a price increase to around $72 per barrel, up by 8% from its previous trading price. Meanwhile, Brent crude, the international benchmark, was trading at approximately $79 per barrel on Sunday night, also up by about 8% from its previous trading price, reaching a seven-month high.
Following the military actions, stock futures dropped, causing concern among investors. The Dow futures fell by 517 points, equivalent to a 1% decline, with similar decreases seen in the S&P and NASDAQ futures. Additionally, gold futures rose by 2% in response to the spike in oil prices.
In retaliation, Iran launched strikes on US and Israeli military bases across the Middle East after the death of Ayatollah Ali Khamenei. President Trump confirmed the joint military operation carried out by the US and Israel, vowing to retaliate against the Iranian regime. He urged the Iranian people to overthrow their government, while Iran promised severe retribution for what they deemed a criminal attack.
President Trump, in a video statement on Truth Social, declared US military retaliation against the terrorists responsible for attacking civilization. He emphasized the continuation of combat operations until the objectives were met, anticipating more US casualties in the process.
For live updates, follow our blog for the latest developments.
