US-Iran Strikes Lift Oil Prices Amid Hormuz Shipping Risks

Donald Trump posted a fabricated video on his social media platform showing explosions at Iran’s Kharg Island oil terminal, an image his own Pentagon quickly dismissed as false. The clip, which the president captioned as the facility being “blown to smithereens,” came as the United States and Iran traded fresh strikes for the first time in more than a month.

The episode unfolded against a backdrop of renewed fighting that has already lasted six months and shows no sign of ending. US forces hit targets on Larak Island on Sunday, prompting Iranian missile attacks on American bases in Jordan. Trump told Fox News the United States would “hit them hard” in response. Iranian officials described the latest round as limited but warned that further US action would draw a severe reply.

Kharg Island remains central to the conflict. The small rocky outpost off Iran’s coast handles roughly 90 percent of the country’s crude oil exports. Tehran has reinforced it with additional air defenses and placed mines in surrounding waters. Trump has repeatedly singled out the site in public statements, calling it a potential target that could be seized if necessary. Experts have long described it as Iran’s economic weak point.

The renewed hostilities have driven oil prices sharply higher. Brent crude rose above $92 a barrel on Tuesday after jumping more than 2 percent the previous session. Two tankers carrying Saudi crude were struck by unknown projectiles while leaving the Strait of Hormuz on Monday, according to shipping intelligence firms. No casualties were reported, but the incidents added to fears that the vital waterway could remain effectively closed.

Those price increases are already reaching consumers. Britain’s energy regulator raised the price cap by 4 percent starting in October, citing the surge in wholesale gas costs tied to the Middle East conflict. Households that are not locked into fixed-rate deals face higher winter bills at a time when many are still recovering from earlier shocks.

Iranian President Masoud Pezeshkian said Tehran would reciprocate if Washington returns to commitments made in a June interim agreement that halted earlier fighting. The deal unraveled quickly, however, and both sides have since relied on sanctions, blockades and limited strikes. Mediators including Qatar and Oman have so far failed to reopen the Strait of Hormuz to normal traffic.

The spread of AI-generated imagery from the US president has compounded uncertainty. Defense officials had to clarify that no strike on Kharg occurred overnight, even as actual US and Iranian attacks continued elsewhere. The incident has drawn attention to the difficulty of separating verified military developments from official misinformation during an active conflict.

Global markets are watching closely. Any sustained disruption to Gulf oil flows would push prices higher still and risk broader economic damage. For now, the pattern of limited strikes and economic pressure appears set to continue, with little indication that either side is prepared to step back.