Why are global oil prices rising now and will Brent crude go from $72.48 to $80 per barrel in next jump? Global oil prices are rising sharply as the United States and Israel have launched a large-scale military operation against Iran. The attacks have brought the Strait of Hormuz into the conflict zone, creating concerns about potential disruptions to oil exports from the Middle East. Over 20 per cent of the world’s crude passes through this waterway. Traders and analysts are factoring in a risk premium. Brent crude settled at $72.48 per barrel, with forecasts suggesting prices could reach $80.

Why Are Global Oil Prices Rising Now and Will Brent Crude Go from $72.48 to $80 Per Barrel in Next Jump?

Global oil prices are rising due to escalating tensions in the Middle East. The United States and Israel have launched a military operation against Iran. This action has brought the Strait of Hormuz into the conflict zone, increasing the risk of disruptions to crude exports. Over 20 per cent of global oil passes through this waterway. Brent crude settled at $72.48 per barrel, and analysts say prices could reach $80 per barrel if supply disruptions occur. Traders are factoring in a “war premium” due to the current geopolitical situation.

Why Are Global Oil Prices Rising Now?

Oil prices are rising because of potential supply disruptions from the Middle East. The US and Israel’s military operation against Iran has increased uncertainty. Missile attacks in the Strait of Hormuz and threats to Iran’s naval forces create concerns about oil movement. The risk premium added by traders reflects fears of interruptions to global supply. Even limited military escalation can push prices higher, while strong demand and low inventories add pressure to the market.

Global Oil Price Rise Explained

Global oil prices are rising due to the US and Israel launching a massive military operation against Iran. The attack has brought the Strait of Hormuz into a conflict zone, which could disrupt crude exports from Middle Eastern countries.

Geopolitical Tensions and Oil Supply

Over 20 per cent of the world’s oil passes through the Strait of Hormuz, connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea. Heavy missile attacks and US President Donald Trump’s statement on destroying Iran’s navy have raised concerns about movement of oil from the region.

Analysts expect a “war premium” to push oil prices higher due to coordinated attacks by the US and Israel. Tehran has launched retaliatory strikes, increasing risks of supply disruptions.

Brent Crude and Market Impact

Oil prices rose about 2 per cent on Friday. Brent crude settled at $72.48 per barrel. Barclays Bank stated Brent crude could rise to around $80 per barrel if there is any significant supply disruption. The bank added that the market is pricing in a risk premium due to ongoing geopolitical tensions.Barclays said that even if escalation does not immediately disrupt supply, a 1 million barrel per day outage could push Brent crude to $80. Traders are also monitoring US-Iran nuclear negotiations, which have not reached an agreement.

US-Iran Relations and Market Risk

US President Donald Trump expressed disappointment over negotiations with Iran and warned that force may be necessary. The large US military presence in the region increases the likelihood of future strikes, contributing to oil market uncertainty.

Barclays noted that if no supply disruption occurs, and Iran’s response is less severe than expected, oil prices could decline by $3 to $5 per barrel. However, the market is structurally tightening with low spare capacity, limited inventories, and strong demand, keeping prices under pressure.

Barclays said recent history may reduce the risk premium if tensions fade. Yet, the combination of military actions, tight supply, and strategic chokepoints like the Strait of Hormuz continues to create upside potential for oil prices.

Will Brent Crude Go from $72.48 to $80 Per Barrel in Next Jump?

Analysts at Barclays Bank suggest that Brent crude could reach $80 per barrel if there is a significant supply disruption. Even a one million barrel per day outage would push prices higher. Currently, Brent crude is at $72.48 per barrel. If tensions ease or Iran’s response is limited, the market could see a $3–$5 decline per barrel. However, structural market factors such as tight inventories and low spare capacity may support higher prices in the near term.

Analysts Insights and Market Outlook

Barclays and other market analysts note that the oil market is experiencing a risk premium due to geopolitical tensions. Analysts say that while escalation does not always lead to immediate supply disruption, even minor outages can create price spikes. The market is structurally tightening with low spare capacity, firm demand, and limited inventories. Traders are watching US-Iran negotiations and regional military actions to assess potential supply risks. Overall, geopolitical risks remain a major factor for oil prices in the coming weeks.

What Should Investors Do Now?

Investors should monitor global events and oil market trends closely. With Brent crude at $72.48 per barrel, they should prepare for possible volatility. Analysts suggest factoring in risk premiums and potential supply disruptions. If tensions escalate, prices may rise toward $80 per barrel. Conversely, if no disruption occurs, prices could fall by $3–$5. Investors should balance risk and exposure, follow official updates from the US, Iran, and Israel, and consider using hedging strategies or diversified energy investments to manage price fluctuations.

FAQs

Why are global oil prices rising now?
Global oil prices are rising due to US-Israel attacks on Iran and threats to the Strait of Hormuz. Traders are factoring in a risk premium for potential supply disruptions.

Will Brent crude reach $80 per barrel soon?
Brent crude could reach $80 per barrel if supply from the Middle East is disrupted. Analysts note the risk premium is influenced by geopolitical tensions and tight oil inventories.