Global oil prices surged by nearly 2% during early Asian trade on Tuesday after the United States military launched fresh air strikes against Iranian targets, keeping energy markets volatile as negotiators struggle to lock down a peace deal.
International benchmark Brent crude futures jumped by $1.40, or 1.5%, to reach $97.56 a barrel. This rebound follows a sharp 7% drop in the previous session when traders prematurely bet on an immediate ceasefire. Meanwhile, U.S. West Texas Intermediate (WTI) crude hovered at $91.25 a barrel.
The price spike came immediately after U.S. Central Command confirmed it had targeted missile positions and mine-laying boats in southern Iran. Local media in Iran confirmed heavy explosions near the strategic port city of Bandar Abbas, located right on the edge of the critical Strait of Hormuz shipping lane.
Why the Strait of Hormuz Matters to Global Markets
The ongoing three-month-old war has severely choked global energy supplies. Since the conflict erupted, Tehran has blocked almost all international commercial shipping through the Strait, a critical choke point through which 20% of the world’s entire oil and gas supplies pass. This blockade has driven global energy prices up by over 50%.
Tankers Move, but Caution Prevails
Market analysts note that commercial shipping companies are eager to move. Recent ship-tracking data showed a few stranded tankers—including a supertanker holding Iraqi crude bound for China and three liquefied natural gas (LNG) vessels heading to South Asia—finally managed to cross the Strait after being stuck for nearly 90 days.
However, political demands continue to keep the markets highly unstable. U.S. President Donald Trump reiterated his strict demand that Iran completely surrender its highly enriched uranium stockpile to the U.S. for destruction before final sanctions relief is granted.
Market experts warn that while initial steps are moving forward, the deal could easily fall apart at the final hour, following the pattern of several previous failed ceasefire attempts.
