U.S. Confirms Iran Strike, Sending Oil Prices Higher After Hours
Oil futures had settled lower for a third weekly loss Friday before spiking in extended trading after the U.S. military confirmed a retaliatory strike on Iran.
The U.S. military confirmed a retaliatory strike on Iran Friday, jolting oil markets in after-hours trading and reversing earlier losses that had pushed crude to a third-straight weekly decline. The confirmation came after the regular session had already closed, triggering an immediate move higher in oil futures as traders reassessed the geopolitical risk premium baked into energy prices.
During the regular trading session, oil futures settled lower as demand concerns and broader macro pressures continued to weigh on prices. That made three consecutive weeks of losses for crude — a streak reflecting mounting worries about global economic growth and supply-demand imbalances that had kept bearish sentiment in control heading into the weekend.
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The after-hours spike underscores how quickly Middle East tensions can override fundamental market pressures. Any military escalation involving Iran, one of the region's major oil producers and a key actor near the strategically critical Strait of Hormuz, carries the potential to disrupt global energy supply chains and inject acute volatility into commodity markets.
Analysts will be watching closely in the coming sessions to determine whether the after-hours gains hold when markets reopen, or whether traders treat the move as an overreaction pending further clarity on the scope and consequences of the strike. The episode serves as a sharp reminder that geopolitical flashpoints remain a powerful wildcard for energy markets even during periods of sustained downward pressure.
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