Global oil prices posted their biggest one-day percentage increase in years, amid concerns that the escalating conflict in the Middle East could cause major power outages, CNN reported, quoted by BTA.
The price of Brent crude, which is used as a global benchmark, rose 4.3% to $72.4 per barrel. At the same time, the price of U.S. benchmark West Texas Intermediate jumped 5% to $71.4 per barrel.
According to Reuters, these are the biggest daily gains for both types of oil since March 2022. since, a month after the Russian invasion of Ukraine began.
Ahmad Assiri, research strategist at financial firm Pepperstone, noted that the surge in prices illustrates both immediate supply concerns and a growing sense that prolonged negative news could prolong a period of escalation, not unlike the previous conflict between Israel and Iran.
Investors are concerned about a possible Iranian response, potential attacks on the United States and the disruption of critical oil transportation routes.
In stock markets, U.S. stock futures fell as investors sought safety in traditional assets such as gold. Dow Jones futures fell 1.3%, or more than 540 points, while the S&P 500 and Nasdaq Composite futures fell 1.4% and 1.6%, respectively.
Gold prices rose about 1% to $3,413.6 an ounce.