Oil Prices Jump After US-Iran Clash Near Strait of Hormuz
Oil prices surged more than 2% during Asian trading on Friday after U.S. and Iranian forces exchanged fire near the Strait of Hormuz, increasing concerns over potential disruptions to global energy supplies.
Despite the escalation, President Donald Trump stated that the month-old ceasefire agreement between the two countries remained active.
Brent crude futures for July delivery climbed 2.1% to $103.37 per barrel, while West Texas Intermediate (WTI) crude futures gained 2.2% to $96.90 per barrel.
The rebound followed a volatile trading session on Thursday, when oil prices had settled roughly 1% lower.
Strait of Hormuz Tensions Raise Supply Concerns
The latest gains came after Iran accused the United States of targeting an Iranian oil tanker and another vessel entering the Strait of Hormuz, along with conducting strikes near Qeshm Island and surrounding coastal regions.
The U.S. military responded by saying it acted in self-defense after Iranian drones, missiles, and small boats allegedly targeted three U.S. Navy destroyers traveling through the strategic shipping route.
Washington stated that no American military assets were damaged during the confrontation.
Trump Says Ceasefire Still Holding
President Donald Trump attempted to calm financial markets by describing the latest exchange as “just a love tap” and insisting that the ceasefire agreement with Iran remained intact.
Iranian state media later reported that conditions in the affected areas had returned to normal.
However, investors and traders continued to monitor the situation closely due to fears that the conflict could escalate further around the Strait of Hormuz.
The shipping route is one of the world’s most important energy corridors, handling roughly 20% of global oil and liquefied natural gas supplies.
Markets Shift Toward Safe-Haven Assets
The latest confrontation represented the most serious violation so far of the fragile ceasefire established in April following weeks of conflict between Washington and Tehran.
Diplomatic negotiations led by Pakistan aimed at securing a broader agreement between the two countries are still ongoing.
The geopolitical uncertainty also strengthened the U.S. dollar and pressured stock index futures as investors shifted toward safe-haven assets ahead of the highly anticipated U.S. nonfarm payrolls report later on Friday.
