Oil markets and global equities were jolted by rising geopolitical tensions after a military strike in the Middle East. The escalation sparked panic buying in crude and a sharp shift in risk sentiment, sending energy prices higher and global stock markets lower amid renewed uncertainty.

WTI soars, global markets slide after Israeli airstrike

Crude oil prices surged on Friday following a pre-emptive Israeli airstrike targeting Iranian nuclear facilities. The escalation has sparked fears of a broader conflict in the Middle East, sending shockwaves through global markets.

West Texas Intermediate (WTI) crude futures jumped by $6.16, reaching $74.20 per barrel, while Brent crude also advanced to $75.36. This represents a sharp daily gain of nearly 9%, as traders brace for possible disruptions to oil supply from a region critical to global exports.

Israeli authorities described the strike as a preventive measure against an imminent threat. Reports suggest that the operation killed Hossein Salami, commander of Iran’s Revolutionary Guards, and potentially several senior nuclear scientists.

Iran has since declared a state of emergency, with market participants expecting a retaliatory wave of missile and drone attacks. These developments have intensified geopolitical risk, adding to oil market volatility.

The fallout extended beyond commodities. US equity futures slumped, with S&P E-mini contracts down 1.7% and Nasdaq futures retreating by 1.8%. European markets followed suit, as STOXX 50 futures fell 1.6%.

In Asia, Japan’s Nikkei declined by 1.3%, South Korea’s KOSPI slipped 1.1%, and the Hang Seng Index dropped 0.8%, breaking a streak of strong gains that had recently lifted global equities to record highs.

Oil traders are now watching closely for any further escalation, especially potential threats to shipping lanes like the Strait of Hormuz—a key artery for global oil transportation.

Technical analysis: Momentum turns strongly bullish

WTI crude has rebounded sharply from intraday lows near $67.10, rallying to just above $74.60. This impressive move is supported by a bullish MACD crossover, with the faster EMA line and histogram showing strong upward momentum.

On the 15-minute chart, short-term moving averages (5- and 10-period) have turned higher and crossed above the 30-period moving average, reinforcing bullish control.

The $72.15–$72.20 zone now appears to offer short-term support, while resistance is likely around $74.60–$74.80.

Trading volume has increased alongside the rally, with each upward surge accompanied by longer bullish candles and strengthening MACD signals. Minor pullbacks have remained shallow, suggesting healthy consolidation phases rather than exhaustion.

Market outlook: Risk sentiment under pressure

This geopolitical shock arrives at a delicate time for global markets already dealing with trade uncertainty and slowing economic data.

Additional tension comes from US President Donald Trump’s renewed threats to impose unilateral tariffs, raising concerns for export-reliant economies.

The rapid escalation in the Middle East risks derailing the recent uptrend in global equities and commodity-linked currencies.

Oil prices may continue to rise if the conflict deepens. However, any diplomatic breakthroughs or signs of de-escalation could lead to swift reversals.

For now, safe-haven assets and energy markets are taking centre stage.

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