Oil prices surge as US-Iran tensions escalate in Middle East

Oil markets responded sharply to heightened military activity in the Middle East as the US and Iran engaged in tit-for-tat attacks across strategic waterways. The Strait of Hormuz, through which roughly one-third of the world's seaborne oil passes, became a flashpoint as both sides targeted each other's vessels in the crucial shipping channel.

Iran's military forces struck US military bases located in Jordan, marking a significant escalation in direct attacks on American infrastructure in the region. The strikes underscored Tehran's willingness to expand its operations beyond maritime confrontations and into broader military engagements across the Middle East.

Tanker traffic off the coasts of Kuwait and Bahrain faced mounting risks as Iran issued threats against commercial shipping in these strategically vital areas. The threats to merchant vessels have raised concerns among shipping companies and energy traders about the safety of maritime commerce in the Persian Gulf, further contributing to upward pressure on crude oil prices.

The escalation comes amid broader regional tensions, with energy markets already sensitive to supply disruptions. Industry analysts warned that any further deterioration in US-Iran relations could have significant implications for global oil supplies and prices, with particular concern for Asian economies heavily dependent on Gulf oil imports.