Key facts
- Oil prices surged as the U.S. and Iran exchanged strikes.
- WTI crude futures climbed to $85.46 per barrel, and Brent crude futures rose to $90.49.
- The U.S. struck two Iranian rocket launchers on Larak Island.
- Iran launched ballistic missiles and drones at U.S. military installations in Jordan.
- Jordan's air defenses intercepted 13 ballistic missiles fired from Iranian territory.
- Traffic through the Strait of Hormuz has decreased.
Oil prices climbed in early Asian trade as the U.S. and Iran exchanged strikes, marking a significant escalation in the seventh month of their conflict. West Texas Intermediate (WTI) crude futures traded at $85.46 per barrel, up 2.47%, while Brent crude futures climbed 2.71% to $90.49.
The latest escalation began Sunday when U.S. forces struck two Iranian rocket launchers on Larak Island, inside the Strait of Hormuz, which U.S. Central Command described as a "limited, precise action against IRGC minelaying forces posing an imminent threat."
Iran responded by launching ballistic missiles and drones at U.S. military installations in Jordan. The Jordanian Armed Forces confirmed their air defense systems intercepted and destroyed eight missiles that entered Jordanian airspace. The IRGC later confirmed it had targeted infrastructure and fighter aircraft positions at two U.S. bases in Jordan, warning of forceful responses to further U.S. strikes.
This exchange leaves the oil market assessing whether the conflict will remain contained or lead to major disruptions for Gulf oil exports. While Brent's move back above $90 is significant, prices remain below earlier war-driven highs. Traffic through the Strait of Hormuz has also dropped, with fears that the recent selloff in oil may have outrun the reality of current physical market conditions.