Oil Surges as US-Iran Strikes Renew Hormuz Shipping Fears

Energy markets absorbed the sharpest jolt in weeks as renewed US strikes on Iranian targets and Iranian retaliation against American facilities across the Gulf raised the prospect of interrupted crude flows through the Strait of Hormuz. Brent crude futures climbed as much as 5 percent intraday before settling near a 2.3-3.25 percent gain, trading at $77.72-$78.48 a barrel; West Texas Intermediate rose 2.1-3.29 percent to $72.92-$73.76. The moves reversed recent declines that had returned prices to pre-conflict levels after an interim US-Iran agreement last month.

The immediate trigger, according to US Central Command and multiple wire reports, was an Iranian strike on a Cyprus-flagged container ship in the strait that left one crew member missing and the vessel ablaze. American forces responded with airstrikes on Iranian air-defense systems, coastal radar, missile and drone sites, and small boats. Iran’s Revolutionary Guard Corps then reported strikes on US bases in Kuwait, Bahrain, Jordan, Oman and Qatar, while declaring the strait closed to unauthorized traffic. President Trump stated that commercial shipping continued and that peace talks remained active even as the prior ceasefire was scrapped.

Global equity futures reflected the uncertainty. South Korea’s Kospi fell nearly 9 percent, led by a 15 percent drop in SK Hynix shares; Tokyo’s Nikkei lost 1.9 percent. European indexes opened modestly higher while US futures showed the S&P 500 down 0.3 percent and Nasdaq-100 futures off 0.8-0.9 percent. Analysts at UBS and ANZ noted that inbound tanker counts had already fallen to a five-week low, adding a measurable risk premium even before any sustained closure.

The flare-up directly threatens the interim memorandum that had aimed to keep the strait open after 60 days of talks. Iran’s parliament speaker cited Article 5 of that document in warning that one-sided deals were over. Goldman Sachs estimated that expanded pipeline capacity could eventually bypass more than 60 percent of pre-war Gulf exports by the end of 2028, yet no such capacity exists at present. Two inflation reports and the start of major-bank earnings this week will now be read against the added variable of higher energy costs.