Brent crude oil prices surged to approximately USD 96 per barrel following renewed hostilities between Israel and Iran, according to Danske Bank research cited by FXStreet. The escalation began after Israel conducted overnight air strikes inside Iran, which came in response to Tehran firing ballistic missiles at northern Israel on Sunday. This marked the first such exchange since the April ceasefire. The sequence of events was further complicated by earlier Israeli strikes on Beirut the same day, which preceded Iran's missile attack on Israel [1].
The renewed conflict has led markets to reassess regional supply risks, particularly as hopes for a broader deal to reopen the Strait of Hormuz have diminished. The Danske Research Team notes that the latest air strikes have undermined these hopes, contributing to the sharp rise in oil prices. Brent crude jumped about 3% overnight, reaching USD 96.5 per barrel as the situation in the Middle East escalated [1].
The oil price movement is also occurring against a backdrop of broader risk sentiment and upcoming economic events, including the United States Consumer Price Index (CPI) and European Central Bank (ECB) meetings. While US President Donald Trump stated that he had advised Israel not to respond militarily and insisted that the flare-up would not derail a potential US-Iran agreement, the immediate market reaction has been one of heightened concern over supply disruptions [1].
CONCLUSION
The renewed military exchanges between Israel and Iran have driven Brent crude prices sharply higher, reflecting increased market anxiety over regional supply risks and the fading prospect of reopening the Strait of Hormuz. With oil up about 3% to USD 96.5 per barrel, the market is closely watching further developments in the Middle East and upcoming economic events for additional direction.