Oil prices surged over 5% on Thursday as an escalating military conflict between a US-Israeli coalition and Iran led to a halt in shipping through the critical Strait of Hormuz The conflict, which follows a US-Israeli strike that assassinated Iran’s Supreme Leader Ayatollah Ali Khamenei, has pushed US crude futures to their highest point since July 2024 Brent crude rose to $85.49 per barrel, while US West Texas Intermediate crude reached $80.66
The disruption in the strategic waterway has forced some major Middle Eastern producers to reduce output, with one analyst noting there is “no movement” in the strait The escalating situation has led maritime bodies to designate the Strait of Hormuz, Gulf of Oman, and Persian Gulf as a ‘warlike operations area’ A UN agency reported that approximately 20,000 seafarers and 15,000 passengers are now stranded in these waters
The military exchanges have intensified across the region. Iran has reported that US and Israeli bombing has killed 1,230 people and deliberately targeted civilian areas, including schools and hospitals In retaliation, Iran’s Islamic Revolutionary Guard Corps (IRGC) has launched missile attacks on Israeli targets, including Ben Gurion airport and the Ramat David Airbase Tehran also claimed to have struck a US aircraft carrier, though the US has rejected some of Iran’s military assertions Adding a political dimension to the crisis, US President Donald Trump stated he should have a say in the selection of Iran’s next supreme leader, specifically rejecting the candidacy of Khamenei’s son
Mohsin Rana
