
Audio By Carbonatix
Global oil prices jumped after Israel said it had struck Iran, in a dramatic escalation of tensions in the Middle East.
Benchmark oil contracts, Brent Crude and Nymex light sweet, were up by more than 10% after the news emerged.
Traders are concerned that a conflict between Iran and Israel could disrupt supplies coming from the energy-rich region.
The cost of crude oil affects everything from the price of food at the supermarket to how much it costs to fill up your car.
Analysts have told the BBC that energy traders will now be watching to see whether Iran retaliates in the coming days.
"It's an explosive situation, albeit one that could be defused quickly as we saw in April and October last year, when Israel and Iran struck each other directly," Vandana Hari of Vanda Insights told the BBC.
"It could also spiral out into a bigger war that disrupts Mideast oil supply," she added.
In an extreme scenario, Iran could disrupt supplies of millions of barrels of oil a day if it targets infrastructure or shipping in the Strait of Hormuz.
The strait is one of the world's most important shipping routes, with about a fifth of the world's oil passing through it.
At any one time, there are several dozen tankers on their way to the Strait of Hormuz, or leaving it, as major oil and gas producers in the Middle East and their customers transport energy from the region.
Bounded to the north by Iran and to the south by Oman and the United Arab Emirates (UAE), the Strait of Hormuz connects the Gulf with the Arabian Sea.
"What we see now is a very initial risk-on reaction. But over the next day or two, the market will need to factor in where this could escalate to," Saul Kavonic, head of energy research at MST Financial, said.
Latest Stories
-
Why male victims of abuse remain silent
49 seconds -
Government targets 70% local fuel supply through TOR, Sentuo expansion
6 minutes -
Jubilee Field crude output hits 95,000 barrels per day as Ghana reverses production decline
7 minutes -
Ghana to import cotton from Benin to revive Volta Star Textile factory – Mahama
7 minutes -
Mahama assures Akosombo spillage victims of fair compensation as verification nears completion
12 minutes -
Smart Africa Chief Lacina Koné to Speak at Pan African AI Summit 2026 in Accra
16 minutes -
Mahama promises new Volivo Bridge contractor by end of year
18 minutes -
Emma Ankrah: Stop waiting for closure: Healing doesn’t need permission
22 minutes -
Jinapor calls for investment, innovation to build resilient downstream petroleum sector
22 minutes -
Community banking strengthens access to justice and economic development – Justice Bernasko
23 minutes -
High Court strikes out A-G’s bid to revoke Hanan Abdul-Wahab’s medical travel permission
36 minutes -
World PR Day 2026: The Golden Age of Strategic PR
37 minutes -
Some cases should end at the Court of Appeal to ease Supreme Court’s workload – Justice Asare-Botwe
44 minutes -
Black Queens’ Cynthia Konlan advocates for goalkeeping development at CAF ‘Stars Spotlight’ webinar
49 minutes -
Indian activist urged to end hunger strike as he loses 9.1kg in 19 days
50 minutes