Brent Crude Surges Past $104 as U.S.-Iran Clashes Intensify in Strait of Hormuz

Oil prices rallied on Thursday, with Brent crude futures climbing past $104 a barrel, as escalating military confrontations between the United States and Iran in the Middle East heightened concerns over global energy supply security.

Naval Attacks Rattle Markets

The latest price surge was triggered by what reports described as the largest tit-for-tat attacks on shipping since the conflict began in February. According to Investing.com, Iran stated it struck 10 vessels in and around the Strait of Hormuz on Wednesday. The U.S. reportedly retaliated by targeting five Iranian oil tankers.

As of 9:41 AM ET, key benchmarks reflected the growing geopolitical risk:

• Brent crude futures rose 3.5% to $104.81 per barrel.
• U.S. West Texas Intermediate (WTI) crude futures also gained 3.5% to trade at $99.46 per barrel.

Broader Supply Disruption Fears

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The conflict has severely impacted transit through the Strait of Hormuz, a critical chokepoint for global oil shipments, with traffic remaining far below pre-war levels. Analysts at ANZ noted in a research report that the retaliatory actions suggest "oil shipments through the Persian Gulf are likely to remain disrupted for the foreseeable future," warning that a wider conflict could deliver a "deeper shock to oil supplies."

Adding to supply anxieties, Iran-backed Houthi rebels have reportedly launched attacks on Saudi Arabian energy infrastructure. These actions raise concerns about the safety of passage through the Bab el-Mandeb Strait, another vital shipping lane for oil producers in the Gulf.

Political Uncertainty Lingers

The military escalation comes amid a complex political backdrop. U.S. President Donald Trump told reporters on Wednesday that he expected the war with Iran to conclude after the November midterm elections. However, a Wall Street Journal report, citing senior advisors, warned the conflict could potentially persist until the end of the president's term in January 2029, adding a layer of long-term uncertainty for energy markets.