Retaliatory military action in the Strait of Hormuz raises immediate risks to global crude flows and regional supply stability.
The US conducted strikes against Iranian targets following attacks on Navy warships in the Strait of Hormuz, a critical chokepoint for 20% of global oil shipments. The operation heightens tensions in a region already grappling with supply disruptions from ongoing conflicts.
Prior incidents in the strait have triggered sharp spikes in oil prices, with Brent crude rising as much as 4% in past confrontations. Analysts warn of potential escalation that could further strain energy markets already under pressure from OPEC+ production cuts and seasonal demand increases.
Markets reacted swiftly, with front-month Brent futures climbing 1.8% to USD 87.45 per barrel in after-hours trading, while safe-haven assets like gold and the Japanese yen saw modest gains.