Oil Prices Surge Following Iranian Missile Attacks on Israel
Global benchmarks climbed as Tehran launched its first strikes since an April ceasefire, prompting a diplomatic push from Washington to prevent Israeli retaliation.
Primary source: BBC World News. Full source links and update notes are below.
Fast summary
Start here
- Brent crude jumped 2.6% to $95.50 per barrel following the first Iranian missile strikes on Israel since April.
- President Donald Trump is reportedly urging Prime Minister Benjamin Netanyahu not to retaliate in order to preserve a potential final deal with Iran.
- The Islamic Revolutionary Guard Corps (IRGC) warned that the strikes mark the beginning of a week-long campaign.
What happened
Oil prices climbed during Monday morning trade in Asia after Iran launched missiles at Israel. The strikes represent the first direct engagement of this kind since a ceasefire was brokered between the two nations and the United States in April. In response to the escalation, the global benchmark Brent crude rose 2.6% to $95.50 a barrel, while U.S.-traded crude increased by 2.5% to $92.75.
What's new in this update
Iran's Islamic Revolutionary Guard Corps (IRGC) has signaled that this is not an isolated incident, warning that the attacks are the start of a 'full week' of strikes. U.S. President Donald Trump has intervened diplomatically, stating he will urge Israeli Prime Minister Benjamin Netanyahu not to retaliate. Trump indicated that the U.S. is close to a 'final deal' with Iran and expressed concern that military escalation could jeopardize the agreement.
Key details
Despite the diplomatic pressure from Washington, the Israeli military has stated it is prepared to 'strike the enemy' as soon as an official order is given. The market reaction reflects ongoing volatility; oil prices have been swinging significantly since the initial U.S. and Israeli strikes on Iran on February 28, with prices frequently hovering around the $95 mark as traders assess the risk to energy infrastructure.
Background and context
A ceasefire agreement has been technically in effect since April 17, though both Israel and Iran have been accused of repeated violations. The conflict has severely impacted the Gulf region, specifically regarding oil and gas shipments. Iran has previously threatened to retaliate against vessels attempting to cross the Strait of Hormuz, a vital chokepoint for global energy trade, in response to earlier U.S.-Israeli military actions.
What to watch next
The immediate focus remains on Israel's cabinet and whether they will heed President Trump's request for restraint. Continued strikes from the IRGC over the coming week would likely push energy prices higher and could lead to a formal suspension of the April ceasefire, potentially closing key maritime trade routes in the Gulf.
Why it matters
The escalation threatens to disrupt global energy flows through the critical Strait of Hormuz and could derail delicate diplomatic negotiations between the U.S. and Iran.
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