Oil prices have surged sharply as escalating tensions in the Middle East followed joint US and Israel strikes on Iran.

WTI crude futures jumped nearly 10% during trading, briefly topping $75 per barrel - the highest level in eight months - before settling slightly lower, still more than 8% above the previous close.

Brent crude was trading around $77 per barrel. As of March 2, WTI was priced at approximately $70.66 per barrel, up 5.43% for the day.

Strait of Hormuz Under Watch

Markets are closely monitoring the Strait of Hormuz, a key chokepoint handling about one-fifth of global oil shipments. Despite Iran’s assurances that the strait remains open, several shipping companies have rerouted vessels amid fears of supply disruptions.

Regional Strikes Add Pressure

Additional pressure came from Iranian strikes on U.S. assets in neighboring countries, including the United Arab Emirates, Bahrain, Kuwait, Qatar, Saudi Arabia, Jordan, Iraq, and Syria.

OPEC+ Output Hike Fails to Calm Market

OPEC+’s April production increase of 206,000 barrels per day - less than 0.2% of global demand - did little to ease market concerns, analysts say, as geopolitical risks continue to dominate.