Oil Prices Surge 13 Percent After U.S.-Israeli Strikes on Iran
Brent crude climbed to $82 per barrel on the ICE exchange — a 14-month high — before retreating to approximately $79.50 as markets digested the scale of the crisis. At the center of the turmoil sits the Strait of Hormuz, the narrow waterway separating Iran from Oman that channels roughly 20% of the world's oil and gas supplies. Although Iranian authorities maintain the passage remains technically open, widespread reporting indicates tanker traffic has ground to a near-halt amid escalating strike risks.
The UK Maritime Trade Operations Centre (UKMTO) confirmed Sunday that two vessels had been attacked in the Strait of Hormuz, while Oman's Maritime Security Center separately reported that a US-sanctioned tanker was struck off its coastline earlier the same day.
Reuters reported Sunday that at least 150 tankers — including crude oil and LNG carriers — sat anchored in Gulf waters outside the Strait, with dozens more stationary beyond the chokepoint. Media, citing industry brokers, reported that insurers had warned shipowners they would cancel existing policies and sharply increase coverage costs for any vessels attempting to transit the Gulf and the Strait of Hormuz.
Economist Yegor Susin estimated that traffic through the Strait has already fallen between 38% and 50%. Should the disruption persist for four weeks, he projected potential oil supply losses of 200 to 300 million barrels — a scenario that could temporarily drive prices into the $80 to $120 per barrel range.
The military campaign that ignited the crisis shows no sign of easing. US President Donald Trump indicated Sunday the conflict could extend for "four to five weeks," vowing that strikes would continue until American objectives are achieved. The campaign has already claimed the life of Iranian Supreme Leader Ayatollah Ali Khamenei, along with senior officials including the commander of the Iranian Revolutionary Guard Corps. Tehran has responded with retaliatory airstrikes targeting Israel and several Gulf states hosting US military assets.
The conflict widened further as Hezbollah entered the fight, launching a wave of cross-border attacks against Israeli military positions. Israel struck back with retaliatory airstrikes aimed at the Lebanese armed group's infrastructure and command network — signaling that what began as a bilateral strike campaign is rapidly evolving into a multi-front regional war.
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