Oil markets experienced a significant surge, with prices jumping over 7% amid escalating military tensions involving Iran, the United States, and Saudi Arabia, sparking fears about potential disruptions to the global energy supply. The price of Brent crude soared nearly 8%, reaching approximately $90.75 per barrel, while West Texas Intermediate (WTI) saw an increase of almost 7% to about $84.76 per barrel. This spike followed a series of military exchanges that have raised concerns about a prolonged conflict in the region.
The tensions escalated as Iran’s Islamic Revolutionary Guard Corps (IRGC) announced it had launched ballistic missiles at U.S. military facilities in Jordan in retaliation for recent American military actions. Concurrently, U.S. and Saudi forces executed coordinated strikes against positions held by Iran-backed militants in Iraq. The operation reportedly focused on logistics and weapon sites linked to a series of drone attacks on military and energy infrastructures.
This conflict has also heightened worries regarding maritime security. The IRGC reported that its naval forces intercepted and attacked three oil tankers in the Strait of Hormuz, claiming they ignored navigation warnings. Additionally, Yemen’s Houthi rebels stated they had targeted a Saudi-linked oil tanker in the Red Sea, compounding the risks facing commercial shipping in these critical waterways.
The renewed hostilities have amplified fears of potential supply disruptions through the Strait of Hormuz and the Bab el-Mandeb Strait, both of which are crucial energy transit routes globally. Analysts have cautioned that continued assaults on shipping and energy infrastructure might sustain elevated oil prices and contribute to increased volatility in global markets.