Global oil prices surged over 20% amid escalating tensions between the US, Israel, and Iran, with traders fearing potential disruptions to Middle East oil infrastructure. The conflict, which intensified after recent military strikes and retaliatory actions, has raised concerns about supply chain vulnerabilities in a region responsible for nearly 20% of global crude exports. Analysts note that even a partial shutdown of key oil routes like the Strait of Hormuz could trigger a severe energy crisis. The surge has immediate implications for energy markets and global economies. Higher oil prices increase production costs for industries worldwide, potentially accelerating inflation and slowing economic growth. Traders are closely monitoring military movements and diplomatic statements for signs of de-escalation or further conflict. The US dollar index has weakened slightly against the euro as investors shift funds into energy assets. For Gulf investors, the situation presents both risks and opportunities. While oil revenues may benefit from higher prices, prolonged conflict could destabilize regional markets. Key watchpoints include OPEC+ policy adjustments, sanctions developments, and the resilience of alternative energy investments. Energy sector stocks in the Tadawul and Dubai markets have seen increased volatility.

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