Key facts
- WTI crude oil futures surged due to escalating Middle East conflict.
- Iran attacked U.S. assets and oil corridors, leading to U.S. retaliatory strikes.
- Shipping risks in the Middle East have increased, impacting oil prices.
- Two Saudi oil tankers diverted course in the Red Sea due to Houthi threats.
- US forces conducted air strikes on targets around Iran, aiming to degrade its ability to threaten vessels in the Strait of Hormuz.
- Three US soldiers were killed in Jordan, with a fourth possibly missing, prompting further US strikes.
WTI crude oil futures surged as escalating conflict between Iran and the United States in the Middle East heightened concerns over the security of vital oil shipping routes. Iran's attacks on U.S. assets and oil corridors prompted retaliatory U.S. strikes and blockades, with air raid sirens blaring in Bahrain and other Gulf states. The struggle for control of the Strait of Hormuz, a strategic waterway through which about one-fifth of the world's oil and gas transit, continued after the ninth day of U.S. air strikes on targets around Iran. Tensions increased over the weekend following the deaths of three U.S. soldiers in Jordan, with a fourth possibly missing. US Central Command stated the latest strikes aimed to degrade Iran's ability to threaten vessels transiting the strait. President Donald Trump confirmed the strikes were carried out in honor of the fallen service members. US forces have been operating in Jordan, including at the Muwaffaq Salti Air Base, which has been used to launch strikes against Iran. The Islamic Revolutionary Guards Corps claimed to have targeted U.S. aircraft and military assets in Jordan, Kuwait, and Syria. The conflict has led traders to price in multiple damaged chokepoints and a complex supply system, driving up oil prices. Adding to supply concerns, two Saudi oil tankers reportedly turned back in the Red Sea due to threats from Houthi forces, further disrupting regional trade. Iran stated that 50 people were killed and over 500 injured in recent attacks on the country, though this could not be independently verified. Despite the fighting, Iranian Foreign Ministry spokesman Esmaeil Baghaei indicated that diplomatic exchanges have continued between Washington and Tehran.