On Saturday morning, February 28, the United States and Israel executed coordinated military strikes on targets in Iran, which immediately impacted oil prices. By Monday morning, WTI crude oil futures had risen by 8% to approximately $72.6 per barrel, marking the highest level in over eight months. According to Marcin Wawrzkiewicz, Country Manager at Malcom Finance in Poland, it remains uncertain whether oil prices will reach $100 or dip below $70.

The diesel market experienced the most significant price surge on the ICE exchange, with an opening jump of nearly 17%, raising prices to a two-year high, although some of the gains were later corrected. In comparison, Brent crude prices rose by about 13%, indicating that the market was not just factoring in supply availability problems, but also considering potential disruptions to fuel supplies. Analyst Krzysztof Kamiński from OANDA TMS pointed out that the primary concern revolves around the duration of military actions in the region.

In summary, the geopolitical tensions in the Middle East, particularly involving Iran, are expected to shape the trajectory of oil prices in the coming days. Investors are closely monitoring the situation, as shifts in military engagement could lead to oscillations in commodity markets, influencing economic stability and energy costs globally. This development highlights the interconnectedness of global politics and financial markets, particularly in the energy sector.