Oil Prices Surge Amid Middle East Tensions

0:00On March 2nd, oil prices jump sharply this morning amid fresh fighting between Iran and U.S. Israeli forces in the Middle East. Brink crude climbed almost 13% in early trading, hitting its highest level in over a year, before settling about 7.6%. Higher at $77.80 per barrel, the surge stems from the world's key oil production and shipping hub facing new risks. Iran has warned tankers to avoid the strait of hormones, a vital route carrying one-fifth of global oil and gas supplies. Officials report two vessels struck nearby, heightening fears of disruptions. This follows recent strikes by Israel on Beirut, and U.S. Israel hits on Iranian targets after the killing of Iran's supreme leader. Markets reacted swiftly, with London's FTSE 100 index, dipping more than 1% early on before recovering. Travel stocks took a hit. The carnival down 8% and British airways parent IAG of 7.6% while defense firm BAE Systems

1:03rose 7.4% and oil giants Shell and BP gained around 4%. The pound weakened nearly 1% against the dollar, now at 1.335, as investors flocked to the safe haven U.S. currency. Asian markets like Tokyo's Nikkei also fell 1.5% at open.