US-Iran Tensions Drive Oil Prices to 12% Weekly Gain, IEA Warns of Supply Risks

Oil prices surged 12% for the week as escalating U.S.-Iran hostilities disrupted global markets, with Brent crude stabilizing near $85 per barrel amid heightened geopolitical risks. The International Energy Agency (IEA) has raised alarms over potential supply chain shocks following clashes in the Strait of Hormuz, a critical maritime chokepoint.

U.S. Strikes Escalate Tensions, Iran Reports Casualties

U.S. military actions against Iran this week included attacks on an oil tanker near the country’s main export terminal, according to reports. Iran’s state media cited seven fatalities from these strikes, though independent verification remains pending. The U.S.

The U.S. Central Command reiterated that the strait “remains free and open,” while Iran’s government declared the waterway an “invincible red line” against foreign interference.

IEA Chief Warns of Oil Security Crisis

IEA Executive Director Fatih Birol warned at a Council on Foreign Relations event that “oil security is still a critical issue,” urging immediate action to prevent further price volatility. “We should be worried if the situation does not improve in the next few weeks,” he said, citing disruptions to shipping traffic as a key concern.

Market Reactions and Geopolitical Implications

Analysts at J.P.

The situation also highlights vulnerabilities in energy infrastructure.

What’s Next for Global Energy Markets?

Analysts are closely monitoring diplomatic channels. The U.N.