Oil surges as US-Iran clashes shake fragile Hormuz ceasefire
News Desk/Foreign Media
Islamabad: Fresh clashes between the United States and Iran rattled global energy markets on Friday, sending oil prices sharply higher and casting doubt over efforts to stabilise shipping through the strategically vital Strait of Hormuz.
Brent crude rose $1.41, or 1.41 per cent, to $101.47 a barrel by 0123 GMT, while US West Texas Intermediate (WTI) crude gained $1.12, or 1.18 per cent, to $95.93. Prices had surged more than 3 per cent earlier in the session before easing slightly.
The rebound came after three consecutive days of declines driven by optimism that Washington and Tehran were nearing an agreement to preserve a fragile ceasefire and reopen the Strait of Hormuz, a route that previously handled nearly one-fifth of the world’s oil and gas supply before conflict erupted on February 28.
However, tensions escalated again after Iran accused the US of breaching the month-old ceasefire by attacking ships and civilian areas near the strait. Tehran said American forces targeted an Iranian oil tanker, another vessel, and locations on Qeshm Island as well as coastal regions near Bandar Khamir and Sirik.
The US military said its strikes were retaliatory measures after Iranian forces fired missiles, drones and deployed small boats against American naval vessels transiting the waterway. According to US Central Command (CENTCOM), three Navy destroyers were targeted, though no American assets were damaged.
Iranian military officials claimed their counterattacks inflicted “significant damage” on US vessels east of the Strait of Hormuz and south of the port city of Chabahar, though Washington denied sustaining losses.
Despite the exchange, US President Donald Trump insisted the ceasefire remained intact, reportedly describing the confrontation as “just a love tap” during remarks to an ABC reporter.
Iranian state media later reported that calm had returned to islands and coastal areas surrounding the strait after several hours of fighting.
The latest flare-up occurred as Tehran reviewed a new US-backed peace proposal aimed at ending the hostilities while postponing disputes over Iran’s nuclear programme and broader regional issues. The proposal also seeks to restore shipping access through Hormuz, though Tehran has yet to formally respond.
Market analysts warned that uncertainty surrounding the conflict continues to threaten global oil supplies.
“On the supply front, the picture remains tight, while a peace deal remains elusive,” IG analyst Tony Sycamore said in a market note.
Meanwhile, Reuters reported that the US Commodity Futures Trading Commission has launched an investigation into nearly $7 billion worth of oil trades placed ahead of major announcements by Trump related to the Iran conflict.
Most of the trades reportedly involved short positions betting on falling prices before Trump delayed attacks or announced ceasefire measures that triggered market declines.
Separately, Washington imposed sanctions on Iraq’s deputy oil minister and three militia leaders over alleged support for Iran.
Regional tensions also extended to Lebanon, where Israel said it carried out an airstrike in Beirut that killed a commander from Hezbollah, the first Israeli strike on the Lebanese capital since last month’s ceasefire agreement there.
Iran has repeatedly linked a lasting truce with Washington to an end to Israeli military operations in Lebanon.
