Brent crude prices jumped 10% to about $80 a barrel on Sunday as the U.S. and Israel launched strikes on Iran, raising fears over Middle East oil supply. Analysts warn prices could climb to $100 a barrel if tensions continue.
Traders cited the potential closure of the Strait of Hormuz, a vital route for over 20% of global oil, as a major factor driving the spike. Many tanker operators and oil companies have suspended shipments through the strait amid Tehran’s warnings.
OPEC+ announced a modest 206,000 bpd output increase, representing less than 0.2% of global demand, unlikely to offset supply risks. Alternate pipelines through Saudi Arabia and Abu Dhabi could partially ease disruptions, but a net loss of 8–10 million bpd remains likely.
Governments and refiners in Asia are exploring alternative oil sources, with India considering Russian crude to replace Middle East shipments. Analysts expect prices to settle around $92–$100 per barrel once trading resumes after the weekend.
