Brent Oil Surges After Israel Strikes Iran

Brent crude oil surged over 6%, hitting its highest level since February after Israel carried out a strike on Iran, intensifying fears of broader conflict and potential supply disruptions in the Middle East. Although oil infrastructure was not directly targeted, concerns persist about possible Iranian retaliation, especially given its control of the vital Strait of Hormuz. The International Energy Agency assured markets of its ability to tap 1.2 billion barrels in emergency reserves if needed. U.S. crude inventories dropped more than expected, signaling strong demand, while partial evacuations of U.S. bases and threats from Iran underscored heightened risks. Meanwhile, the U.S. and China reached an agreement to ease trade tensions, improving the energy demand outlook. Softer U.S. inflation data also fueled expectations of possible Federal Reserve rate cuts.