Oil Prices Surge as U.S. And Israel Conduct Strikes in Iran
Global oil prices experienced a significant jump on Saturday, February 28, 2026, following coordinated military strikes by the United States and Israel targeting Iran. The attacks, focused on military, rocket, and nuclear-related infrastructure, have heightened concerns about potential disruptions to energy supplies in the Middle East, a region critical to global energy markets.
Brent crude, the international benchmark, initially rose more than 10%, reaching its highest level since January, before partially retracing gains. It ultimately closed the day more than 7% higher at $74.23 a barrel, according to the BBC. The initial surge reflects investor anxieties about a potential escalation of conflict and its impact on oil production and transportation.
Despite the recent increase, oil prices remain more than 10% lower than they were at the same point last year. They are also below the peaks seen in early 2022, when Russia’s invasion of Ukraine drove crude prices well above $100 a barrel. However, the current situation introduces a new layer of geopolitical risk to the oil market.
The attacks prompted a broader market downturn, with share prices falling across Asia and Europe on Friday, February 29, 2026. Japan’s Nikkei share index ended down 0.9%, while the UK’s FTSE 100 index closed 0.39% lower. U.S. Stock markets also closed lower, with the Dow Jones Industrial Average falling 1.79% and the S&P 500 down 0.69%.
Investors sought safe haven assets amid the uncertainty. The price of gold rose 1.2% to $3,423.30 an ounce, reaching its highest level in nearly two months, while the Swiss franc also saw gains. Reuters reported that these moves indicate a flight to safety as investors brace for potential further instability.
Analysts are now closely monitoring the situation for further escalation. Following Israel’s attack, reports indicated that Iran launched approximately 100 drones towards the country. Invezz.com noted that energy traders will be watching closely to spot how the conflict unfolds in the coming days.
Barclays analysts suggest that Brent oil could reach $100 per barrel in the wake of the attacks, according to MarketScreener Nederland. This projection underscores the potential for significant price increases if the conflict intensifies and threatens oil supply routes.
