Crude jumps over 2 per cent on fresh US–Iran military escalation

Oil prices rose sharply on Friday after renewed military hostilities between the United States and Iran reignited fears of supply disruptions in West Asia, pushing benchmark crude contracts higher in volatile trading.

US West Texas Intermediate (WTI) crude futures for June delivery climbed 2.25 per cent to $96.94 per barrel in real-time trade, while Brent crude futures for July rose 2.07 per cent to $103.37 per barrel.

The gains came after the US military said it carried out retaliatory strikes against Iran on Thursday, targeting sites linked to attacks on American forces in the region.

Iran’s military accused Washington of violating a ceasefire arrangement and claimed US forces had targeted two vessels in the Strait of Hormuz while also striking civilian areas.

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The escalation renewed concerns over the security of the Strait of Hormuz, one of the world’s most strategically important oil transit routes through which nearly one-fifth of global crude supply passes.

WTI crude had settled down 27 cents at $94.81 per barrel in the previous session before rebounding sharply on fresh geopolitical concerns. Brent also extended gains after briefly crossing the $103 mark.

The latest flare-up comes after days of speculation that Washington and Tehran were moving closer to a temporary truce. Reports earlier this week suggesting progress in negotiations had briefly pulled oil prices lower.

However, renewed exchanges between the two sides have again shifted market sentiment toward fears of prolonged instability in the region.