BY MIRABEL ODETA
U.S. crude oil prices surged in early trading on Friday after renewed military exchanges between the United States and Iran intensified concerns about possible disruptions to global energy supplies and shipping routes in the Middle East.
West Texas Intermediate crude futures climbed as much as 3% during early market activity before slightly easing. By 2233 GMT, WTI prices were trading up 2.58%, gaining $2.45 to reach $97.26 per barrel. The sharp increase came just one day after oil prices had closed lower, with the benchmark contract settling down 27 cents at $94.81 per barrel.
The sudden rebound in oil markets followed reports of fresh military confrontations between Washington and Tehran, marking the most serious escalation since the two countries agreed to a ceasefire last month. Investors reacted quickly to fears that the renewed violence could threaten energy infrastructure and maritime traffic through the Strait of Hormuz, one of the world’s most critical oil transit routes.
The U.S. military announced that it had launched retaliatory strikes against Iranian targets on Thursday. According to American officials, the strikes focused on military sites believed to be connected to recent attacks on U.S. forces operating in the region. U.S. Central Command said the operations were defensive in nature and aimed at protecting American naval assets and personnel.
Iran’s military strongly rejected the American explanation and accused Washington of violating the existing ceasefire agreement. Iranian officials claimed the United States targeted two vessels moving through the Strait of Hormuz and also carried out attacks on civilian areas near Iran’s southern coastline.
The exchange of accusations and military action immediately rattled global energy markets because the Strait of Hormuz handles a significant portion of the world’s oil exports. Roughly one-fifth of global oil and gas shipments pass through the narrow waterway connecting the Persian Gulf to international markets. Any threat to shipping traffic in the area often causes rapid price swings due to fears of supply shortages.
Energy traders and analysts warned that even limited clashes between the United States and Iran could create uncertainty across global commodity markets. Concerns are especially high because both countries have exchanged fire multiple times since the ceasefire began in April, suggesting the truce remains fragile despite ongoing diplomatic efforts.
The latest tensions come at a sensitive moment for the global economy, as markets are already dealing with inflation concerns, supply chain pressures, and uncertainty surrounding economic growth in several major countries. Rising oil prices could add further pressure on fuel costs and transportation expenses worldwide if the conflict worsens.
Analysts said investors are closely watching whether the latest military exchange develops into a broader confrontation or remains a limited incident. So far, both Washington and Tehran have signaled that they do not want a full-scale escalation, but the repeated clashes continue to raise doubts about the long-term stability of the ceasefire.
The oil market reaction also reflects concerns that Iran could attempt to disrupt shipping through the Strait of Hormuz if tensions continue rising. Previous regional conflicts involving Iran have triggered fears of attacks on oil tankers, naval confrontations, and interruptions to global energy exports.
Despite the increase in prices, some market experts noted that oil could remain highly volatile in the coming days as traders respond to new developments from the Middle East. Diplomatic negotiations between the United States and Iran are still ongoing, particularly over Tehran’s nuclear program and regional security issues, but recent military incidents have complicated those talks.
For now, investors remain focused on the possibility of further instability in one of the world’s most strategically important energy regions, with global oil prices likely to remain sensitive to every new development between the United States and Iran.
Original article
Comments