Oil prices surged late Sunday in response to the United States’ military strikes on three Iranian nuclear facilities, marking a significant escalation in the Iran-Israel conflict. US oil futures rose 2.7% to approximately $75.80 per barrel, while Brent crude, the global benchmark, increased by 2.44% to $78.88 per barrel. In contrast, US stock futures fell, with the Dow dropping 175 points, or 0.4%, and both the S&P 500 and Nasdaq futures declining by 0.4% and 0.5%, respectively. The US dollar saw a slight increase of 0.3%, a typical reaction during periods of global unrest, despite previous falls due to tariffs imposed by the Trump administration. Israeli stocks reacted positively, with traders optimistic that the strikes could diminish the nuclear threat from Iran, leading the Tel Aviv 125 to rise 1.8% to a record high. The US produces about 13.4 million barrels of oil daily, and despite increased crude stockpiles and OPEC+ plans to boost production, concerns loom over potential Iranian actions that could disrupt oil flow through the strategically vital Strait of Hormuz. Economists warn that retaliatory actions could lead to significant disruptions in oil supply, potentially triggering inflation in the US economy. The Strait of Hormuz is crucial for global oil trade, with over 25% of seaborne oil passing through it, highlighting the geopolitical risks associated with the recent military actions.