In a significant spike, global oil prices saw an increase of over 7% amid escalating military tensions involving Iran, the United States, and Saudi Arabia. This development has heightened apprehensions about potential disruptions in global energy supplies. Brent crude surged nearly 8%, reaching approximately $90.75 per barrel, while West Texas Intermediate (WTI) rose almost 7% to about $84.76 per barrel. These increases followed a series of fresh military actions that have intensified concerns over a lingering regional conflict.
The Iranian Revolutionary Guard Corps (IRGC) reported launching ballistic missiles targeting U.S. military installations in Jordan. This attack was claimed to be in retaliation to recent actions by the United States military. Concurrently, coordinated strikes by U.S. and Saudi forces targeted Iran-backed militant positions in Iraq. The operation was aimed at logistics and weapons sites that were reportedly linked to ongoing drone attacks on military and energy infrastructure.
The conflict has not only raised military tensions but also amplified concerns about maritime security. The IRGC stated that its naval forces intercepted and attacked three oil tankers in the Strait of Hormuz for allegedly ignoring navigation warnings. Adding to the maritime risks, Yemen’s Houthi rebels announced they had targeted an oil tanker linked to Saudi interests in the Red Sea.
These incidents have exacerbated fears over potential supply disruptions through the Strait of Hormuz and the Bab el-Mandeb Strait, both critical energy transit routes globally. Market analysts caution that persistent attacks on shipping lanes and energy infrastructure could maintain elevated oil prices and contribute to volatility in global markets.