Oil prices surged 13% in Asian trading Monday after the U.S. and Israel launched strikes against Iran, with Brent crude hitting $82 a barrel before paring gains. The attacks killed hundreds including Supreme Leader Ayatollah Khamenei and several top officials, sending shockwaves through energy markets already bracing for supply disruptions.

Iran retaliated by launching missiles at Israel and several U.S.-allied Middle Eastern nations including Bahrain, Kuwait, Qatar, and the United Arab Emirates. Tehran also targeted ships in the Strait of Hormuz, a critical waterway handling roughly 20% of global oil shipments. ANZ analysts warned that attacks on tankers have substantially raised supply risks.

The Organization of Petroleum Exporting Countries and allies agreed to increase production by 206,000 barrels daily in a Sunday meeting, potentially offsetting some disruptions. U.S. President Donald Trump indicated military action would continue in coming days, warning of likely American casualties.