Oil Prices Surge Above $94 as US-Iran Conflict Escalates

Oil prices surged above $94 a barrel Tuesday as escalating hostilities between the United States and Iran heightened fears of disruptions to crude supplies through the Strait of Hormuz.

Brent crude rose $4.06, or 4.49%, to $94.55 a barrel, while West Texas Intermediate gained $4.44, or 5.18%, to $90.20 a barrel.

Murban crude also jumped $7.19, or 7.30%, to $105.60 a barrel, according to Oilprice.com.

The latest rally followed fresh U.S. airstrikes on Iranian targets, with Washington saying its forces targeted the Islamic Revolutionary Guard Corps, or IRGC.

The U.S. Central Command said the strikes followed attempted attacks by the IRGC on commercial shipping in the Strait of Hormuz and on U.S. service members deployed in the region.

The escalation has renewed concerns over the security of the Strait of Hormuz, a key route for global oil supplies.

Oil prices had already risen after attacks were exchanged between the two countries over the weekend, while reports of attacks on oil tankers added to supply concerns.

Reuters reported that two supertankers carrying Saudi oil were struck by unknown projectiles within minutes of each other while travelling outbound through the Strait of Hormuz late Monday, citing shipping intelligence and tracking firms.

Following the reports, Brent crude futures, which were already up about 2%, gained almost another 2%.

Iran has also threatened to halt oil exports from the Gulf if the United States continues its attacks.

Iranian Parliament Speaker Mohammad Baqer Qalibaf was quoted by Iranian media as saying that if Iran is prevented from exporting oil from the Persian Gulf, “no one will be able to export oil.”

The renewed confrontation has raised fears that the six-month-old conflict could escalate into a wider war and threaten crude supplies from the oil-rich Gulf region.

The conflict had previously shifted toward sanctions, blockades and economic pressure, but the latest attacks have increased concerns about a return to sustained military confrontation.

U.S. President Donald Trump warned Iran that it would face a stronger response if it retaliated against the latest American strikes.

The U.S. strikes came after Iranian missiles were fired at two U.S. air bases in Jordan in response to an earlier American attack on Iran’s Larak Island.

The escalation also coincided with plans by Washington to impose additional economic sanctions on Tehran.

U.S. Treasury Secretary Scott Bessent said bank sanctions against Iran were likely to be announced this week and next, while warning that Washington would also target entities doing business with the IRGC.