• Oil prices surged over 7% after Israel's military strikes on Iran escalated tensions.
• Brent crude futures reached $74.65 a barrel, the highest since early April 2023.
• Analysts warn of potential supply disruptions through the Strait of Hormuz, a key shipping route.
• Goldman Sachs predicts prices could hit $100 per barrel in extreme scenarios, although major disruptions are deemed unlikely.
• Wider financial markets reflected investor anxiety with declines in stock values.

Oil prices jumped over 7% after Israel announced it had struck Iran, causing heightened concerns about potential disruptions in oil supply from the Middle East. Brent crude futures rose to $74.65 a barrel, while U.S. West Texas Intermediate crude increased to $73.42 a barrel, reported Reuters, Business Insider, and Channel News Asia.

Analysts stress the significance of the Strait of Hormuz, through which approximately 20% of the world's oil supply transits. Disruptions in this crucial maritime corridor could significantly affect oil markets. "In an extreme scenario, Iran could disrupt supplies of millions of barrels a day," noted BBC and India Times.

While there is concern over escalating tensions, financial analysts from Goldman Sachs and Citi indicate that significant disruptions are unlikely. Goldman Sachs stated that while "a blockade of the Strait of Hormuz remains a concern," they do not foresee immediate changes to oil supply levels, as current conditions remain stable. They predict prices could escalate to over $100 in worst-case scenarios, rather than remaining at elevated levels long-term, according to Reuters and India Times.