Global oil prices surged today after Israel's Defence Chief announced potential fresh military strikes. This escalation increased geopolitical tensions in the volatile Persian Gulf.
Crude futures now include an immediate risk premium. This reflects market anxiety over supply disruptions from a region providing one-fifth of the world's daily oil.
Brent and WTI futures prices widened during the market reaction. Gulf-specific benchmarks like Murban outperformed as traders priced in risks to regional export infrastructure.
Saudi Aramco's CEO reported that global energy markets lost approximately 1 billion barrels of oil over the last two months. Ongoing shipping disruptions in the Strait of Hormuz caused these losses.