Iran Conflict Sends Oil Prices Soaring as Supplies Disrupted

Oil prices surged on Thursday as the escalating conflict between the US and Iran disrupted supplies and shipping, prompting major producers to cut output.

The attack by Iran on Israel sent shockwaves through global markets, causing Brent crude to rise $1.72 or 2.1% to $83.12 per barrel, while U.S. West Texas Intermediate crude increased $1.95 or 2.6% to $76.61.

A key concern is the supply of oil from Iraq and Kuwait, which could be cut by as much as 3.3 million barrels per day if the Strait of Hormuz remains closed for eight days, according to J.P. Morgan analysts.