Hormuz Crisis Sends Oil Prices Higher as Iran–US Military Tensions Shake Global Markets

The renewed military confrontation between the United States and Iran over control and security in the strategically vital Strait of Hormuz has triggered fresh concerns in global energy markets, pushing crude oil prices sharply higher.

International benchmark Brent crude futures rose more than 4 percent on Monday, reaching $79.29 per barrel. The increase marked the highest level since June 22, reflecting growing fears that continued instability in the Gulf region could disrupt global oil supplies.

The price surge came after a series of military exchanges between Washington and Tehran. The US Central Command said it carried out strikes on hundreds of Iranian military targets, including facilities linked to missile systems, drones and coastal surveillance operations. Iran responded with missile and drone attacks targeting several US allies in the Gulf, including the United Arab Emirates, Qatar, Kuwait, Oman and Bahrain, according to claims from Iranian authorities.

The Strait of Hormuz has become the centre of the latest geopolitical crisis because of its importance to international energy trade. A significant portion of global oil shipments passes through this narrow waterway, meaning any disruption could quickly affect fuel prices, transportation costs and inflation worldwide.

The latest tensions have also affected maritime movement in the region. Shipping activity through the waterway has slowed as companies face increased security risks, insurance costs and uncertainty over the safety of vessels operating in the area.

Oil markets had previously shown signs of stability after Washington and Tehran reached an understanding aimed at reducing hostilities last month. Following that agreement, crude prices moved closer to pre-conflict levels as investors expected a reduction in regional risks.

However, the renewed exchange of attacks has reversed that trend. Current oil prices are now nearly 9 percent higher compared with the period before the initial US-Israeli strikes against Iran at the end of February, showing how quickly geopolitical tensions can influence global commodity markets.

Analysts say the impact of the crisis could extend beyond energy prices. A prolonged confrontation in the Gulf region may increase pressure on global inflation, raise transportation expenses and create additional challenges for economies that depend heavily on imported energy.

The situation around the Strait of Hormuz remains closely watched by governments, energy companies and financial markets. While diplomatic efforts continue, uncertainty over the future of the waterway has become a major factor influencing global economic expectations.