Oil prices surged more than nine percent on Friday, hitting their highest in almost five months after Israel struck Iran, dramatically escalating tensions in the Middle East and raising worries about disrupted oil supplies.

Brent crude futures jumped US$6.29, or 9.07 percent, to US$75.65 a barrel. US West Texas Intermediate crude was up US$6.43, or 9.45 percent, at US$74.47 a barrel.

Friday's gains were the largest intraday moves for both contracts since 2022 after Russia began its Ukraine military offensive, causing energy prices to spike.

Israel said it targeted Iran's nuclear facilities, ballistic missile factories and military commanders on Friday at the start of what it warned would be a prolonged operation to prevent Tehran from building an atomic weapon.

"This has elevated geopolitical uncertainty significantly and requires the oil market to price in a larger risk premium for any potential supply disruptions," ING analysts led by Warren Patterson said in a note.

Several oil traders in Singapore said it was still too early to say if the strike will affect Middle East oil shipments as it will depend on how Iran retaliates and if the US will intervene.

"It's too early to tell but I think the market is worried about shutting off of the Strait of Hormuz," one of the traders said.

In other markets, stocks dived in early Asian trade, led by a selloff in US futures, while investors scurried to safe havens such as gold and the Swiss franc. (Reuters)