Global oil prices jumped sharply on Tuesday after US military strikes inside Iran reignited concerns over the security of shipping routes through the strategically critical Strait of Hormuz, a vital artery for global energy supplies.
Brent Crude climbed nearly 4% during trading, briefly surpassing the $100-per-barrel mark, as investors reacted to escalating geopolitical tensions and growing uncertainty surrounding efforts to restore maritime traffic through the Gulf.
Brent futures rose by $3.96, or 4.1%, to reach $100.10 per barrel before easing slightly to around $99.60 later in the session.
Meanwhile, West Texas Intermediate fell 2.6% to $94.14 per barrel, reflecting volatile market positioning following the US Memorial Day holiday.
Latest Oil Prices:
WTI Crude $93.56 -0.33 -0.35%
Brent Crude $99.58 +3.44 +3.58%
Murban Crude $95.05 +2.23 +2.40%
WTI Midland $95.25 +3.73 +4.08%
Opec Basket $113.4 -1.98 -1.72%
Indian Basket $106.3 -3.05 -2.79%
Natural Gas $2.885 -0.009 -0.31%
Gasoline $3.222 +0.001 +0.04%
Heating Oil $3.710 -0.005 -0.13%
The latest market turbulence followed reports that US forces carried out what Washington described as “defensive strikes” in southern Iran, prompting Tehran to accuse the United States of violating a fragile ceasefire that has been in place for roughly seven weeks.
Iranian media reported explosions in Hormozgan province, while Iran’s Foreign Ministry condemned the strikes as a “serious violation” of ongoing truce arrangements.
The escalation has renewed fears over disruptions in the Strait of Hormuz, through which roughly one-fifth of global oil and liquefied natural gas supplies pass.
Since the outbreak of hostilities in late February, Iran has imposed de facto restrictions on most non-Iranian shipping traffic moving in and out of the Gulf, severely disrupting energy exports and maritime trade flows.
The sharp rebound in oil prices reversed some of Monday’s losses, when markets had rallied on expectations that Washington and Tehran were nearing a broader agreement to end the conflict and fully reopen the waterway.
US Secretary of State Marco Rubio said a final agreement to end the conflict could still take “a few days,” signaling that negotiations remain active despite the military escalation.
At the same time, Iran’s lead negotiator and foreign minister were reportedly holding talks in Doha with Qatar’s prime minister in an attempt to salvage diplomatic momentum.
Analysts said markets remain highly sensitive to developments surrounding the strait and the pace at which shipping operations might normalize.
Giovanni Staunovo of UBS said traders were still awaiting greater clarity regarding any formal agreement, noting that oil flows through the Strait of Hormuz remain constrained despite ongoing negotiations.
Ole Hansen of Saxo Bank said any peace agreement would likely result in only a gradual reopening of the shipping corridor, warning that supply-chain disruptions could take months to fully unwind.
According to reports citing diplomatic communications published by Japan’s Nikkei newspaper, Iran may require around 30 days to clear naval mines from the strait after any agreement is finalized. Maritime traffic for all nations would then gradually resume, alongside the removal of transit fees reportedly imposed by Tehran during the conflict.
There have already been tentative signs of partial recovery in shipping activity. Vessel-tracking data showed three liquefied natural gas tankers recently passing through the strait en route to Pakistan, China, and India, while an Iraqi oil tanker stranded for months also resumed transit.
The crisis has also prompted broader energy-security concerns across Asia. Pakistan is reportedly preparing plans to expand domestic storage capacity for crude oil and refined petroleum products in an effort to strengthen energy resilience against future supply disruptions.
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