Oil prices surge after Iran claims strike on U.S. airbase following fresh American attacks
Global oil markets rallied sharply on Thursday after Iran announced it had targeted a United States military airbase in response to fresh American strikes, escalating fears of a wider regional conflict that could disrupt global energy supplies and commercial shipping through the strategic Strait of Hormuz.
Brent crude futures, the international oil benchmark, jumped more than 3 percent to $97.29 per barrel, while U.S. West Texas Intermediate (WTI) crude rose 3.42 percent to $91.71 per barrel as investors reacted nervously to the latest developments in the Middle East.
Iran’s Islamic Revolutionary Guard Corps (IRGC) said it launched an attack on a U.S. airbase at approximately 4:50 a.m. local time, according to reports carried by the semi-official Tasnim news agency. However, Iranian authorities did not disclose the exact location of the targeted base.
The announcement came shortly after reports emerged that American forces had conducted fresh strikes inside Iran, targeting what U.S. officials described as a military site believed to pose a threat to both American troops stationed in the region and commercial vessels operating through the Strait of Hormuz.
According to MS NOW, U.S. forces also intercepted and shot down several Iranian drones during the operation, signaling a significant escalation in hostilities between Washington and Tehran.
The Strait of Hormuz remains one of the world’s most critical energy chokepoints, with nearly a fifth of global oil supplies passing through the narrow waterway daily. Any threat to shipping routes in the area typically triggers immediate reactions across global energy markets due to concerns over supply disruptions.
Despite the renewed tensions, analysts say some investors remain cautiously optimistic that diplomatic negotiations between the United States and Iran could still prevent a prolonged conflict.
In a note released late Wednesday, Citi said oil markets were beginning to stabilize as traders gradually priced out worst-case supply disruption scenarios amid indications that Washington and Tehran may be moving closer toward a possible agreement.
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However, the bank warned that uncertainty surrounding the timing and outcome of any diplomatic breakthrough continued to keep global central banks on edge, particularly as rising crude prices threaten to fuel inflationary pressures across major economies.
Citi noted that the sustained increase in oil prices was already beginning to create broader economic consequences through what economists describe as “second-round effects,” where higher energy costs spill into transportation, manufacturing and consumer prices.
The bank added that mounting inflation concerns could force several central banks to adopt more aggressive monetary policies, including maintaining higher interest rates for longer periods in an effort to contain rising prices.
The latest escalation between Iran and the United States has once again placed global markets on high alert, with investors closely monitoring developments in the Gulf region amid fears that further military action could send energy prices even higher and intensify economic uncertainty worldwide.
