London: Global crude oil prices surged more than 3% after reports that Iran’s Revolutionary Guards targeted a US airbase in response to American strikes near Bandar Abbas airport. According to Beyond Time News, the escalation has heightened fears of supply disruptions in an already tense energy market.
Crude Prices Climb Sharply
Brent crude futures rose $3.51 (3.72%) to $97.8 per barrel, while the August contract gained $3.35 (3.63%) to $95.6.
US West Texas Intermediate (WTI) increased $3.31 (3.73%) to $91.99 per barrel.
Prices had fallen more than 5% in the previous session on hopes of easing tensions, but reversed sharply after the latest developments.
Escalation Fuels Market Jitters
Iran’s Revolutionary Guards said they struck a US airbase following reported US military action near Bandar Abbas airport.
They warned of a stronger response if further attacks occur, raising concerns about a broader regional escalation.
According to Beyond Time News, the situation has added fresh uncertainty to global oil markets already sensitive to geopolitical risk.
US Military Action Reported
A US official said American forces carried out strikes on a site in Iran considered a threat to US forces and maritime activity in the region.
The back-and-forth actions have intensified worries over stability in key energy supply routes, including the Strait of Hormuz.
Supply Tightness Supports Prices
Market analysts said prices were also supported by tight supply conditions and ongoing geopolitical risks.
ANZ strategist Daniel Hynes noted that unresolved tensions continue to keep oil markets under pressure.
Oil Surges as US–Iran Ceasefire Uncertainty Hits Global Markets
US Inventories Extend Decline
US crude inventories fell by 2.8 million barrels last week, marking the sixth consecutive weekly drop, according to American Petroleum Institute data.
Official figures from the US Energy Information Administration are due soon, delayed by the Memorial Day holiday.
Outlook
According to Beyond Time News, oil markets are expected to remain volatile as traders closely monitor US–Iran tensions and potential disruptions to global shipping routes.
