US and Israel Attack Iran, Oil Prices Threatened to Surge

The global energy market is anticipated to experience significant volatility following coordinated military strikes by the United States and Israel against multiple regions in Iran on Saturday, 28 February 2026 local time. The strikes targeted several locations including the capital Tehran, marking a major escalation in the regional conflict that has been unfolding for months.

Israel’s Defence Minister, Israel Katz, confirmed a “preemptive strike” operation. The Israeli government declared a state of national emergency. US officials characterised the operation as “no minor attack” given its involvement of fighter aircraft from regional bases and aircraft carriers.

Explosions were reported in Isfahan, Qom, and Karaj. Eyewitnesses in Tehran reported seeing thick plumes of smoke rising from districts containing government buildings.

Oil Prices Poised to Surge

According to Oilprice.com, crude oil prices have risen gradually in recent weeks as geopolitical tensions escalated. The latest military action is expected to drive prices even higher.

On Friday, 27 February 2026, crude oil prices had already risen more than 2 per cent following failed talks between Iran and the United States in Switzerland that produced no meaningful progress.

The strikes occurred amid reports of serious domestic instability in Iran. Human rights groups estimate that more than 5,000 demonstrators have been killed in recent government crackdowns.

US President Donald Trump cited Iran’s nuclear programme and its treatment of demonstrators as justification for the strikes.