Oil Prices Spike As US-Iran Strikes Threaten Global Crude Supply

Global oil prices surged towards $100 a barrel in Asian trading after the United States struck five Iranian oil tankers, with one vessel sinking, raising fears that the escalating US-Iran confrontation could disrupt crude supplies and shipping through the strategically vital Strait of Hormuz.

Benchmark Brent crude jumped 1.5% to $99.35 a barrel, while US-traded oil rose 1.3% to $94.23, as markets reacted to the latest exchange of attacks between Washington and Tehran.

The US Central Command (CENTCOM) said it had targeted five Iranian oil tankers after Iran twice attempted to strike an American warship.

Four of the tankers were attacked in the Gulf of Oman and were allegedly linked to Iran’s Islamic Revolutionary Guard Corps (IRGC), while another was struck near Kharg Island, Iran’s main oil-export terminal.

One of the vessels, the M/T Riesco, subsequently sank.

The attacks have heightened concerns about the security of Iran’s oil exports and, more broadly, the uninterrupted movement of crude through the Strait of Hormuz, one of the world’s most important energy chokepoints.

Iran subsequently claimed that its Revolutionary Guards had attacked two US vessels, eight oil tankers and 10 other vessels attempting to pass through the Strait of Hormuz.

The development has raised fears that further military escalation could restrict tanker movements through the waterway, potentially sending oil prices sharply higher.

Kharg Island is particularly important to Iran’s oil industry, with about 90% of the country’s crude exports passing through the facility.

US Secretary of State Marco Rubio meanwhile warned that Washington would continue targeting Iranian tankers in response to attacks on American naval vessels.

“Iran continues to try to hit US naval ships. And, for every time they do that or try to do that, they’re going to lose tankers,” Rubio said.

The oil market is also facing additional disruption risks following attacks by Yemen’s Iran-backed Houthi movement on Saudi energy facilities and civilian infrastructure.

Saudi authorities said the attacks injured 73 people, while fires at oil facilities temporarily halted some operations.

The combination of attacks on oil infrastructure, tankers and military vessels has intensified fears of a broader regional disruption to energy supplies.

For global markets, the biggest concern is no longer simply the damage to individual tankers but whether the escalating confrontation will threaten the wider flow of crude through the Gulf and Strait of Hormuz.

A prolonged disruption could push oil prices decisively above the $100-a-barrel threshold, increasing fuel and transportation costs worldwide and adding fresh inflationary pressure to already fragile economies.