Oil prices rise 1% on fears of escalating Middle East conflict

Oil prices rose by around 1% on Friday as investors reacted to fears of escalating conflict in the Middle East, following reports that the US military had struck Iranian targets in Syria. This raised concerns about potential disruptions to oil supplies. While the developments have not yet directly impacted oil supplies, there are fears that exports from major crude producer Iran could be disrupted. Analysts suggest that lower Iranian exports could cause baseline prices to rise by 5%, and there is a possibility of a 20% jump if trade through the Strait of Hormuz is interrupted.