Oil prices jump nearly 3% after fresh US strikes on Iran fuel fears of a prolonged West Asia conflict – Firstpost

Oil prices surged nearly 3 per cent on Thursday after the United States launched a fresh round of military strikes against Iran, intensifying fears of a prolonged conflict in West Asia and raising concerns about potential disruptions to global energy supplies.

US West Texas Intermediate (WTI) crude futures for July delivery climbed to around $92.7 per barrel, while Brent crude futures rose to about $95.4 per barrel as traders rushed to price in a higher geopolitical risk premium. The gains extended a rally that has gathered pace amid escalating hostilities between Washington and Tehran.

The latest jump came after the US military confirmed new strikes against multiple targets inside Iran. US Central Command said American forces had launched “additional self-defence strikes” at the direction of President Donald Trump, citing what it called Iran’s continued aggression. Iranian state media, meanwhile, reported missile and drone attacks against US-linked targets and vessels operating near the Strait of Hormuz.

The conflict has renewed investor focus on the Strait of Hormuz, one of the world’s most important oil transit routes. Iran announced the closure of the strategic waterway following the latest US strikes, warning that vessels attempting to pass through could face military action. Roughly one-fifth of global oil and gas shipments normally move through the narrow channel, making any disruption a major concern for energy markets.

Analysts said the latest escalation has significantly reduced hopes of a near-term diplomatic breakthrough between Washington and Tehran. Instead, markets are increasingly preparing for a prolonged period of geopolitical uncertainty that could keep oil prices elevated and inject fresh volatility into financial markets.

The surge in crude prices rippled across global markets. Asian stocks fell on Thursday, extending losses after a sharp selloff on Wall Street. Investors were already grappling with hotter-than-expected US inflation data when renewed military action against Iran added another layer of uncertainty. Technology-heavy markets in Asia led the decline as traders reduced exposure to risk assets.

On Wall Street, major indices had closed sharply lower in the previous session, with the S&P 500 and Nasdaq weighed down by inflation concerns and rising energy prices. Higher oil prices threaten to complicate the outlook for central banks, particularly the US Federal Reserve, by adding fresh inflationary pressure at a time when policymakers are attempting to stabilise price growth.

Despite the latest surge, some energy analysts believe the market is better positioned to absorb supply shocks than during previous geopolitical crises. Strong US crude exports, softer demand growth from China and alternative supply routes have provided some cushion against disruptions. However, traders remain wary that any further escalation around the Strait of Hormuz could quickly tighten supplies and push prices significantly higher.