Oil Prices Spike As Fresh Attacks By Iran Targets Energy Supply, Global Markets React

Global oil prices moved higher on Tuesday as fresh attacks targeted energy infrastructure in the Middle East. The rise came after Iran launched new strikes affecting crude-producing regions, increasing fears of supply disruption.

International benchmark Brent Crude Oil climbed around 2 percent to $102.16 per barrel. Meanwhile, West Texas Intermediate rose about 1.7 percent to $95.08 per barrel.

The gains followed a sharp fall on Monday, when prices dropped after the head of the International Energy Agency suggested that more oil reserves could be released if needed.

The latest rise in oil prices comes as key energy sites in the region face repeated attacks. A drone strike hit the Fujairah oil complex in the United Arab Emirates. This facility is important as it allows oil exports to bypass the Strait of Hormuz.

In Iraq, two drones targeted a major oil field in the south. This was the second such attack in just four days, raising concerns about a wider pattern.

At the same time, Israel reported that it had carried out a large wave of strikes in Tehran and targeted groups linked to Iran in Beirut. These developments point to rising tensions in the region.

Experts say the situation is shifting from a shipping risk to a direct threat to oil supply. This means the danger is no longer just about blocked routes but about actual damage to production facilities.

Despite rising geopolitical risks, global stock markets showed strength. Major indices in New York opened higher, with gains seen in the Dow, S&P 500, and Nasdaq.

Airline stocks performed well, with Delta Airlines and American Airlines rising nearly five percent after reporting better-than-expected earnings.

In Europe, markets such as London’s FTSE 100, Paris’s CAC 40, and Frankfurt’s DAX were also trading higher during the day.

Asian markets were mixed. Hong Kong, Seoul, and Taipei closed in positive territory, while Tokyo and Shanghai ended lower.

Analysts said that markets remain cautious but stable. Investors are balancing the risks from global tensions with positive corporate earnings and economic signals.

Investors are closely watching central bank meetings this week. Many expect interest rates to remain unchanged, even as energy prices rise.

Higher oil prices can push up inflation, making it harder for central banks to cut rates. At the same time, signs of a slowing labour market in the United States are creating uncertainty.

Experts say the US Federal Reserve is in a difficult position. Slower growth usually calls for lower interest rates, but rising inflation may prevent that.

Australia’s central bank has already raised its key interest rate, pointing to sharply higher fuel costs as a reason.

Concerns over inflation grow

Market experts warn that if oil prices stay above $100 per barrel for a long time, inflation risks will increase.

Higher fuel prices affect transport, production, and daily living costs. This can slow down economic growth and reduce spending.

As a result, investors are becoming more careful, even as stock markets continue to perform well for now.

US President Donald Trump has called on global allies to help reopen the Strait of Hormuz and ensure safe oil transport. However, the response has been limited. Countries such as Germany, the UK, Spain, Poland, Greece, and Sweden have not fully supported the call. Nations like Australia and Japan have also stayed away.

German Chancellor Friedrich Merz said the conflict is not a matter for NATO, showing a cautious approach from European leaders.

Currency markets stay steady

Currency markets showed little movement as investors waited for more clarity. The US dollar remained mostly stable against other major currencies.

The euro and pound rose slightly against the dollar, while the Japanese yen gained some ground.

This steady movement reflects a wait-and-watch approach as global events continue to unfold.

Key market figures

Brent Crude: $102.16 (+2.0%)

WTI Crude: $95.08 (+1.7%)

Dow Jones: Up 0.9%

S&P 500: Up 0.7%

Nasdaq: Up 0.7%

FTSE 100: Up 0.9%

CAC 40: Up 1.0%

DAX: Up 0.8%

(With inputs from AFP)