Woodside Energy Shares Jump 5% as Brent Spikes 14% on Iran Strikes
Woodside Energy shares rose over 5% after Brent crude spiked nearly 14% and WTI jumped 12% following US-Israeli strikes on Iran that effectively closed the Strait of Hormuz, cutting off roughly one-fifth of global seaborne oil flows. The surge in crude rekindled supply fears and pressured global equities.
1. Geopolitical Strikes Fuel Oil Supply Concerns
US and Israeli forces struck multiple targets in Iran, killing supreme leader Ayatollah Ali Khamenei and senior commanders. The attacks prompted Revolutionary Guard warnings and led to an effective closure of the Strait of Hormuz, through which about 20% of seaborne oil transits.
2. Oil Prices Surge and Shipping Disruption
Brent crude briefly jumped nearly 14% while West Texas Intermediate climbed almost 12% at the open, as vessels reported attacks off Oman and the UAE and an oil tanker began sinking after being struck in the strait. Traders dialed back some bets but kept prices about 5% above pre-attack levels.
3. Woodside Energy Stock Reaction
Shares of Woodside Energy rallied more than 5% in early trading, outpacing broader energy peers. Investors flocked to energy names hedge against further supply-driven inflation, boosting sector performance even as general equities sold off.
4. Broader Market and Policy Implications
Asia Pacific equity markets fell sharply, with US futures down over 1%, while gold climbed 2% as a safe haven. Analysts warn that persistent higher oil could lead to stickier headline inflation and encourage central banks to delay rate cuts.