Iran missile attack on US forces and Strait of Hormuz control push oil up 6%
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Oil prices surged over 6% on Wednesday after Iran fired ballistic missiles at U.S. forces in Jordan and tightened control over Strait of Hormuz shipping, reigniting supply disruption fears. Brent crude rebounded from a sharp fall the previous day to trade at $85.61. The rally came even as Saudi Arabia and the U.S. launched airstrikes on Iran-backed groups in Iraq.
The Price Surge
Brent crude jumped 6% to $85.61 at 08:59 Turkish time, erasing the previous day's drop to $80.61. The sudden reversal marked the sharpest intraday gain in weeks as traders priced in a risk premium. The spike also rippled into U.S. Treasury yields, with implications for Federal Reserve rate-hike expectations. Analysts noted that sustained high prices could revive global inflation concerns.
Geopolitical Triggers
Iran launched ballistic missiles targeting U.S. military positions in Jordan, a direct act that heightened fears of a wider conflict. Simultaneously, Saudi and U.S. warplanes struck facilities of Iran-backed militias in Iraq, according to regional officials. The combination of reciprocal strikes raised the specter of a direct U.S.-Iran confrontation disrupting oil flows.
Strait of Hormuz Tensions
Iran rejected an Omani proposal to restart normal ship traffic through the strategic waterway and demanded greater control over vessels passing through. About one-fifth of global oil trade transits the strait, and authorities reported that shipping traffic remained low on Tuesday. The de facto blockade, coupled with Tehran's demands, unnerved energy markets already on edge.
What's Next
Oman is expected to continue mediation in the coming days, as the U.S. weighs further military responses. Analysts warn a protracted Hormuz closure could drive oil past $100 and force central banks to tighten policy further.
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Iran missile attack on US forces and Strait of Hormuz control push oil up 6%
