Oil prices surged above $94 a barrel on Tuesday as the escalating conflict between the United States and Iran sparked fresh concerns about global crude supplies. Brent crude climbed $4.06, or 4.49 per cent, to $94.55 a barrel, while West Texas Intermediate rose $4.44, or 5.18 per cent, to $90.20. Murban crude recorded an even sharper increase, jumping $7.19, or 7.30 per cent, to $105.60 a barrel.
The latest rally came after the United States launched fresh air strikes against targets linked to Iran’s Islamic Revolutionary Guard Corps. The US Central Command said the strikes followed attempted attacks by the IRGC against commercial shipping in the Strait of Hormuz and US military personnel stationed in the region. The development has put the strategically important waterway back in the spotlight, with traders increasingly worried that further attacks could disrupt the movement of crude.
Concerns intensified after reports that two supertankers carrying Saudi Arabian oil were hit by unknown projectiles while travelling through the Strait of Hormuz on Monday. According to shipping intelligence and tracking firms cited by Reuters, the vessels were struck within minutes of each other. Brent crude futures, which had already gained about two per cent, jumped further following the reports as the market reacted to the possibility of wider supply disruptions.
Iran has also issued a strong warning, threatening to prevent oil exports from the Gulf if US attacks continue. Iranian Parliament Speaker Mohammad Baqer Qalibaf was quoted by Iranian media as saying that if Iran was prevented from exporting oil from the Persian Gulf, other countries would also be unable to export. The threat has added another layer of uncertainty to an already tense oil market, particularly because the Strait of Hormuz is a critical route for global energy shipments.
The latest escalation has raised fears that the six-month-old conflict could develop into a broader military confrontation, putting further pressure on oil prices and the global energy market. US President Donald Trump warned Iran of a stronger response if it retaliated against the latest strikes, while Washington is also preparing additional sanctions on Tehran. US Treasury Secretary Scott Bessent said new bank sanctions against Iran could be announced this week and next, with other entities linked to the Islamic Revolutionary Guard Corps also expected to face pressure.
source: punch
