Oil prices rose strongly after Israel launched a military strike on Iran

The global oil markets witnessed a sharp upward wave today after the Israeli military strike on Iranian facilities, which raised investors fears of disruptions in oil supplies from the Middle East, which is one of the most important global energy sources.

A historic jump in prices

Oil prices topped the global financial scene, as Brent crude futures jumped by 14% to reach 78 dollars per barrel, while WTI crude rose to 77 dollars, in an immediate reaction to the recent military escalation.

The consequences of the escalation on global markets

The rapid deterioration of the situation in the Middle East has led to:

- Investors turned towards safe havens such as gold and the Swiss franc.

- Increasing fears of disruption of oil supplies in the event of an extension of the conflict.

- Increasing pressures on the global economy, especially with the continuation of unstable US trade policies under the leadership of President Donald Trump.

Possible effects on the US and global economy

The global economy is already experiencing increasing challenges due to:

- Rising inflation risks as a result of rising oil prices, which may prompt the Federal Reserve to postpone interest rate cuts.

- The repercussions of US tariffs that may increase the costs of imports.

- Weak economic growth if tensions persist for a long time.

What's next ?

With the escalation of hostile statements between Israel and Iran, the markets remain on high alert, as everyone is waiting for developments in the crisis that may turn into a full-scale war or a temporary calm, either way, it seems that the coming weeks will witness sharp fluctuations in the oil, currency and safe-haven asset markets.

It's worth noting that continued geopolitical tensions may strengthen the US dollar as a safe haven, but at the same time, they increase the risk of stagflation, which threatens the global economic recovery.