In Short:
– Oil prices surged after US and Israeli military actions against Iran, with Brent crude at $72.5-$72.9 per barrel.
– Tensions in the Middle East have impacted markets, prompting OPEC+ to consider increasing production to stabilise prices.

Crude oil prices rose sharply following military action by U.S. President Donald Trump and Israel against Iran.

Brent crude oil now trades between $72.5 and $72.9 per barrel, while the US benchmark West Texas Intermediate (WTI) is around $67 per barrel.

Energy markets

Escalating tensions in the Middle East have significantly impacted global energy markets, with oil prices increasing over 15 per cent since January.

Israeli forces initiated a pre-emptive strike in Tehran, resulting in multiple explosions and a marked escalation in conflict.

Israeli Defence Minister Israel Katz labelled the actions as vital for neutralising Iran’s nuclear and missile capabilities.

Diplomatic negotiations between the US and Iran, which had resumed earlier in February, collapsed earlier this week in Geneva.

Production Increase

Iran, a key OPEC member, produces substantial oil and lies strategically near the Strait of Hormuz, a critical transit point for approximately 20 per cent of the world’s oil.

OPEC+ representatives have indicated to Bloomberg that a more aggressive production increase will be considered in an emergency meeting scheduled for Sunday.

The alliance is assessing approaches to mitigate the impact of the recent developments on oil markets.

In Short:
– Market turbulence is expected after the U.S. announces major combat operations in Iran.
– Oil prices may rise due to increased geopolitical risks and uncertainties in U.S.-Iran relations.

Market watchers predict significant turbulence following the U.S. announcement of “major combat operations” in Iran.

The escalation could have broader market implications than recent geopolitical events.U.S. President Donald Trump’s military actions targeted several ministries in southern Tehran. Investors remain accustomed to absorbing geopolitical and economic shocks, including a recent tariff hike and the capture of former Venezuelan President Nicolás Maduro.

Florian Weidinger, co-chief investment officer at Santa Lucia Asset Management, noted that the ramifications from Iran could surpass those from Venezuela, as the latter primarily affects specific heavy crude markets. Analysts expect oil prices to rise significantly as a result of the situation.

Market experts highlight the Strait of Hormuz as a critical oil chokepoint, with about 13 million barrels per day transiting the area in 2025.

Past military actions in the region have resulted in short-term volatility in equities, with potential movements toward safer assets such as gold and government bonds anticipated.

Market Outlook

Investors are advised to remain cautious as they assess potential Iranian responses. While some market positioning reflects a crisis atmosphere, the future of U.S.-Iran relations remains uncertain. The duration of conflict will play a key role in shaping market reactions.

Analysts suggest that a short campaign may lead to temporary price spikes, while a prolonged conflict could result in deeper market impacts and a shift in asset allocations.

In Short:
– President Trump announced major military operations in Iran, targeting missile and naval capabilities.
– The operation, named “EPIC FURY,” follows failed nuclear agreement talks and threats from the U.S. and Israel.

U.S. President Donald Trump announced on Saturday that major combat operations have begun in Iran, warning about potential U.S. casualties.

President Donald J. Trump on the United States military combat operations in Iran: pic.twitter.com/LimJmpLkgZ

— The White House (@WhiteHouse) February 28, 2026

Strikes are targeting Iranian missiles and naval capabilities, following U.S.-Israeli threats regarding Iran’s nuclear activities.”My administration has taken every possible step to minimise the risk to U.S. personnel in the region. Even so, the Iranian regime seeks to kill,” Trump stated in a video on Truth Social.

The U.S. military operation is called “EPIC FURY.” This marks the second series of strikes on Iran since Trump resumed office last year, with the first occurring in June targeting nuclear sites. The current offensive is expected to last several days, according to a U.S. official. Iran is preparing a strong retaliation.

In his communication, Trump urged members of the Islamic Revolutionary Guard to surrender, offering them immunity.

He warned of “certain death” if they do not comply. Recent discussions between Washington and Tehran regarding Iran’s nuclear intentions resulted in no agreement.

Trump’s Encouragement

Trump previously suggested strikes during ongoing protests in Iran, advocating for U.S. assistance if authorities harmed demonstrators.

He encouraged protesters to continue their efforts, stating that the opportunity to claim their government back may not arise again for generations.