Iran’s shift to an offensive stance and threats to the Strait of Hormuz drive oil prices to a 10-month high.
Brent crude surged to $91 per barrel overnight after Iranian officials signaled a move to a “fully offensive” posture and vowed to maintain control over the Strait of Hormuz. The escalation follows heightened rhetoric from both Tehran and Washington, with U.S. officials ruling out extensions to existing agreements and issuing fresh threats.
Oil markets had already faced pressure from supply concerns and winter demand forecasts. The latest tensions extend the risk of prolonged disruptions in the Gulf, a critical chokepoint for global energy shipments. Analysts warn of further upside if the standoff persists into the colder months.
The spike in energy prices adds to inflationary pressures, particularly for economies reliant on imported oil. Long-dated government bond yields, already under strain, may face additional volatility as traders price in sustained cost increases.