iMetal

Oil surged as the first impacts of the war in the Middle East began to be felt, with a near halt to traffic through the Strait of Hormuz and disruption at a big refinery in Saudi Arabia upending energy markets.

Brent futures settled about 6.7% higher to settle near $78 a barrel, the biggest gain since June 2025. The commodity extended gains post-settlement after a spokesperson for Iran's Islamic Revolutionary Guard Corps said the country won't let oil leave the region, according to state media. Diesel futures - the engine of the global economy - settled at the highest in nearly four years.

The US sent conflicting messages about how long a war with Iran might last as airstrikes continued for a third day, with prolonged fighting poised to further roil energy markets and snarl vital shipping lanes. US President Donald Trump said the conflict is projected to last four to five weeks, but added that the US is prepared to fight longer. US Defense Secretary Pete Hegseth, for his part, rejected the idea of an "endless" war.

The Islamic Republic's security chief, meanwhile, ruled out negotiations.

The war marks a dangerous new phase for the Middle East and the global oil market. Iran pumps about 3.3 million barrels a day, or 3% of global output, but it wields greater influence over energy supplies given its location alongside the Strait of Hormuz. Oil from the Persian Gulf must pass through the waterway to get to major markets such as China, India and Japan. The chokepoint handles a fifth of the world's oil and a similar portion of liquefied natural gas.