Oil Prices Rise as Israel-Iran Conflict Escalates, Threatens Global Supply

Oil prices have risen sharply amid escalating conflict between Israel and Iran, with fears that the violence could disrupt critical energy supplies, particularly through the Strait of Hormuz, a key oil transit route. Israeli airstrikes have damaged Iranian nuclear and oil facilities, prompting concerns about Iran potentially retaliating by blocking oil shipments, which analysts warn could add significantly to global oil prices. Market reactions include gains in crude futures and cautious trading in Asian and European equities, while the U.S. Federal Reserve and other central banks prepare for key interest rate decisions amidst geopolitical risks and economic uncertainties. President Donald Trump vetoed an Israeli plan targeting Iran’s Supreme Leader, signaling complex U.S. involvement in the conflict. Despite the heightened tensions, some analysts hope both sides have incentives to de-escalate to avoid broader regional instability. The ongoing conflict continues to influence energy markets and investor sentiment worldwide, with the possibility of further price volatility if the situation intensifies.