International crude oil prices surged above $92 a barrel on Tuesday following a renewed series of military strikes between the United States (U.S.) and Iran in the Middle East. Brent crude futures rose to $92.67 a barrel while U.S. benchmark West Texas Intermediate (WTI) strengthened to $87.48 a barrel on concerns of global energy supply disruptions.
Regional tensions have escalated sharply after a commercial tanker was hit by three unidentified projectiles while transiting the Strait of Hormuz off the coast of Oman, according to a report by the U.K. Maritime Trade Operations Center (UKMTO). The maritime incident came shortly after Iran launched retaliatory strikes on two U.S. military bases in Jordan.
Tehran’s military action was in response to a U.S. military airstrike on Sunday that targeted two Iranian rocket launcher sites on Larak Island. Washington claims the military operation on the strategic island in the Strait of Hormuz is aimed at thwarting Tehran's plans to lay sea mines in the key shipping corridor.
President Donald Trump has stressed Washington's readiness to respond forcefully to the attack on the base in Jordan, claiming that Iran's economic and military capabilities have been severely damaged. For its part, Washington has continued to tighten secondary sanctions under Treasury Secretary Scott Bessent to punish international entities that buy Iranian crude.
In contrast, Iranian President Masoud Pezeshkian said at the Shanghai Cooperation Organization (SCO) Summit that his country was ready to restore stability if the US returned to its commitments to the June agreement. However, security analysts assess that the confrontation, now in its seventh month, is now a test of endurance that risks triggering more aggressive military action.
