Oil Prices Fall Amid Israel-Iran Tensions, US Middle East Evacuations

Oil prices experienced significant volatility amid escalating tensions between Israel and Iran, with fears of a potential conflict threatening global supply routes, particularly the Strait of Hormuz, through which nearly 20-30% of the world's oil passes. After surging more than 4% to recent highs, crude futures pulled back around 1-2% as market participants assessed diplomatic developments, including U.S. decisions to relocate personnel from the Middle East ahead of talks with Iran. President Donald Trump emphasized the U.S. commitment to preventing Iran from acquiring nuclear weapons and acknowledged the region's dangers, while Iran warned it would target U.S. bases if hostilities arise. Analysts from JP Morgan and others warned that an Iranian blockade of the Strait of Hormuz could drive oil prices as high as $120-$130 per barrel, although the risk of such a closure remains low historically. The tensions have also impacted stocks of energy companies like Gujarat Gas Ltd, which fell due to concerns over rising global energy costs linked to crude price fluctuations. Market watchers continue to monitor the situation closely as diplomatic and military developments unfold.