Military action in southern Iran triggers supply concerns, reversing Monday’s 7% oil price decline on peace deal hopes.
Brent crude futures jumped 2.34% to $98.39 per barrel in early Asian trading Tuesday after the U.S. military struck Iranian missile sites. The attacks revived fears of escalating conflict, erasing gains from a 7% plunge on Monday following reports of a potential peace agreement.
WTI futures also rose but remained 4.98% lower for the week at $91.79, with no settlement due to the U.S. Memorial Day holiday. The strikes, confirmed by U.S. Central Command, targeted southern Iran, heightening geopolitical tensions in a key oil-producing region.
Markets had initially reacted to optimism over de-escalation, but the renewed military activity reversed sentiment, focusing attention on supply risks.