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Oil Prices Jump as Iran, U.S. Exchange Strikes and Hormuz Strait Status Becomes Contested
A significant escalation in military strikes between the United States and Iran has sent a fresh wave of uncertainty through global energy markets, with Tehran targeting U.S. military facilities in several Gulf states and claiming to have once again closed the vital Strait of Hormuz.
Military Exchanges Intensify
Iran's Revolutionary Guards stated on Monday that they had launched missile and drone assaults on multiple U.S. targets across the region. According to the statement, the attacks hit:
- U.S. military facilities in Bahrain and Kuwait.
- Radar systems in Oman.
- Fuel tanks and ammunition depots at Prince Hassan Air Base in Jordan.
The U.S. military reported its own operations on Sunday, saying it used aircraft, naval vessels, and drones to strike Iranian military assets. U.S. Central Command said its forces had hit 140 Iranian military targets over the weekend, part of a broader operation that has struck more than 300 targets recently to "degrade Iran’s ability to attack civilian mariners."
Oil Markets React to Strait Disruption
AdThe heightened conflict immediately impacted oil prices, a direct reflection of the Strait of Hormuz's critical role in global energy supply. The strait handled approximately one-fifth of the world's oil and liquefied natural gas shipments before the conflict began on February 28.
On Monday, Brent crude climbed 4.3% to reach $79.31 a barrel, according to Reuters. The price surge underscores investor concern over a potential prolonged disruption to a major maritime chokepoint, which could fuel global inflation.
Conflicting Claims and Diplomatic Collapse
The renewed violence threatens a month-old interim agreement aimed at reopening the strait. Iran's top negotiator, Mohammad Baqer Qalibaf, posted on X that "The era of one-sided deals is OVER," while U.S. President Donald Trump told Reuters in a phone interview, "We’re beating them up."
The status of the waterway remains contested. Iran's new Persian Gulf Strait Authority said passage was "not currently possible" and warned that continued U.S. military intervention could lead to "greater incidents." In contrast, a U.S. statement insisted, "Iran does not control the strait. Traffic is flowing." However, ship tracking sites reportedly showed little movement, and U.S. officials acknowledged that only around 20 vessels had been escorted through an expanded southern route in the previous 24 hours.