Oil Surges as Israel-Iran Conflict Escalates

Oil prices surged over 4% as escalating conflict between Israel and Iran, marked by Israeli strikes on Iran's energy infrastructure and Iranian missile attacks, heightened fears of regional instability and supply disruptions. President Trump's calls for Iran's 'unconditional surrender' and the evacuation of Tehran intensified market concerns, driving up crude prices and boosting oil company shares. Despite limited actual disruptions to global oil flows, the volatility led to declines in US, European, and Australian equities, with airline stocks particularly hard hit by higher fuel costs. Diplomatic efforts, including US-backed ceasefire proposals and international calls for de-escalation, have so far failed to stabilize markets. The International Energy Agency projects global oil supply to outpace demand growth in 2025, but geopolitical risks remain the primary market driver. Investor caution persists amid ongoing uncertainty and heightened tensions.