Oil prices in the U.S. jumped sharply on Sunday after military tensions escalated between the U.S. and Iran. The recent U.S. strikes on three Iranian nuclear facilities raised fears of wider conflict. As a result, financial markets responded swiftly to this significant development.
Oil prices in the U.S. surged by 2.7%, reaching around $75.80 per barrel. Brent crude, the global benchmark, also climbed 2.44% to $78.88 per barrel. These sharp increases reflect growing concerns about potential disruptions to global oil supply.
In contrast, U.S. stock futures fell late Sunday. Dow futures dropped 175 points, or 0.4%. S&P 500 futures also declined by 0.4%, while Nasdaq futures fell 0.5%. Investors appeared cautious amid the rising geopolitical risk.
Meanwhile, the U.S. dollar rose 0.3%, recovering slightly after recent declines caused by new import tariffs. The greenback often gains strength during global crises. Analysts believe the current conflict is driving renewed demand for the dollar as a safe asset.
At the same time, Israeli stocks surged in response to the airstrikes. Investors there viewed the attack as reducing potential nuclear threats from Iran. The Tel Aviv 125 jumped 1.8%, closing at 2,919.62. The TA-35 index gained 1.5%, hitting an all-time high of 2,877.78.
Oil prices in the U.S. remain highly sensitive to events in the Middle East. The Strait of Hormuz, a critical oil shipping route, is now under increased scrutiny. Over 25% of seaborne oil passed through the strait during 2024 and early 2025.
The U.S. imported about 500,000 barrels daily through that strait. That figure accounts for 7% of total U.S. crude oil imports. Any disruption there could cause a sharp spike in prices and threaten inflation control efforts.
Oil prices in the U.S. are now at risk of further volatility. As military tensions continue, energy markets may see increased pressure in the days ahead.
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