Oil prices surge as US-Iran standoff, Ukraine strikes rattle global energy markets

Oil prices skyrocketed, setting the stage for a second week of gains as geopolitical tensions intensified and global energy supplies faced uncertainty. US crude prices surged above $86 a barrel and Brent oil crossed the $93 threshold, driven by the ongoing US-Iran conflict and Russia's disruption of energy infrastructure. The US-Iran dispute intensified as the two nations remained deadlocked over control of the Strait of Hormuz, with Washington preparing a series of economic sanctions to isolate Iran.

President Trump vowed these measures would create "economic D-day" conditions, targeting Iran's access to international finance and commercial channels. Meanwhile, Ukrainian strikes on Russian energy systems sparked fuel shortages in Russia, further rattling global supply chains. Heightened financial concerns also weighed on oil markets, as the US government announced plans to double its liquidity-buyback operations, aiming to stabilize long-term borrowing costs.

Simultaneously, the Federal Reserve weighed the possibility of rate hikes to curb inflation, with policymakers concerned about the ripple effects of rising energy prices. As markets grappled with mounting geopolitical risks and supply disruptions, oil prices remained on an upward trajectory, underscoring the delicate balance between global tensions and economic stability.