Global oil prices rose on Wednesday after the United States launched a fresh wave of military strikes against Iran, intensifying tensions in the Middle East and renewing concerns over the security of energy supplies through the strategically important Strait of Hormuz.
Benchmark Brent crude gained about 1% to trade around $78.80 per barrel, extending gains recorded after the latest escalation in the conflict. Earlier, oil prices had surged by more than 5% following reports of the U.S. military action.
Despite the increase, Brent remains well below the nearly $120 per barrel peak reached in April and is only modestly higher than levels seen when the latest phase of the conflict began at the end of February, suggesting that investors are not yet pricing in a prolonged disruption to global oil supplies.
Market participants are closely monitoring the duration of the military confrontation and its potential impact on shipping through the Strait of Hormuz, one of the world’s most critical energy corridors. Approximately 20% of global crude oil and liquefied natural gas (LNG) shipments transit the narrow waterway, making any disruption a significant risk to international energy markets.
U.S. President Donald Trump said the latest military operation was carried out in retaliation for what he described as Iran’s attack on commercial shipping.
“The strikes are in retribution for yesterday’s bombing of ships by Iran,” Trump said in a post on Truth Social, warning that any further attacks would trigger an even stronger U.S. response.
According to U.S. officials, American forces struck about 90 targets across Iran during a second consecutive day of military operations, following earlier warnings from the White House that Washington would “hit them hard.”
The regional security situation deteriorated further as several Gulf states reported Iranian retaliatory actions. Authorities in Bahrain reported explosions in the capital, Manama, while Kuwait said it intercepted missiles and drones. Qatar also issued a security alert as tensions spread across the Gulf.
Iranian officials defended their response, with chief negotiator Mohammad Bagher Ghalibaf stating that the United States “still hasn’t learned that bullying and breaking promises are no longer cost-free.”
Iranian state media also reported explosions along the country’s southern coastline and on Iranian-controlled islands in the Gulf, indicating that military exchanges had expanded across multiple locations.
The latest escalation follows U.S. strikes on Tuesday, which U.S. Central Command said were conducted in response to attacks on three commercial vessels transiting the Strait of Hormuz. Iran subsequently announced retaliatory strikes against U.S. military installations in Bahrain and Kuwait early Wednesday.
For energy markets, the principal concern remains whether the conflict could threaten maritime traffic through the Strait of Hormuz. While oil prices have risen on heightened geopolitical risk, analysts note that markets have so far avoided pricing in a severe supply shock, reflecting expectations that crude exports from the Gulf have not yet experienced major disruptions.
However, any sustained interruption to shipping through the Strait could tighten global oil supplies, increase freight and insurance costs, and push crude prices significantly higher, with implications for inflation, energy-importing economies, and oil-producing nations such as Nigeria.
