Oil Spikes to $98 Amid Renewed Persian Gulf Attacks, US Sanctions on Iran
Oil prices surged to nearly $98 a barrel after new attacks in the Persian Gulf and US sanctions on Iran, intensifying tensions over the Strait of Hormuz. US forces conducted airstrikes, prompting Iranian retaliation claims, while Kuwait reported missile threats. The conflict, now in its fourth month, continues to disrupt global oil supplies.
Oil prices surged following renewed attacks in the Persian Gulf and fresh US sanctions against Tehran, as the US and Iran remain deadlocked over reopening the Strait of Hormuz. Brent crude rose toward $98 a barrel, while West Texas Intermediate exceeded $92.
American forces conducted airstrikes on a military site and other targets near Hormuz. In response, Iran's Islamic Revolutionary Guard Corps claimed to have targeted the US base that launched the attack. Separately, Kuwaiti Air Defenses reported responding to missile and drone threats, indicating a fragile ceasefire.
The US Treasury sanctioned the Persian Gulf Strait Authority to prevent Tehran from profiting from vessel tolls, calling it an «Iranian-controlled scheme that flagrantly violates international law.» Despite challenges, crude is still set for a second weekly drop on optimism for an interim deal, though sticking points include Iran's nuclear program and control over Hormuz, which faces a double blockade.
Analysts warn that a broken ceasefire risks further attacks on oil infrastructure. US President Donald Trump expressed dissatisfaction with talks on Hormuz, denying an Iranian report of a draft agreement and insisting the strait must be open to all, with the US overseeing it. Trump also stated he would not agree to a bad deal or ease sanctions, despite Tehran's demands. The conflict, now in its fourth month, continues to disrupt vital energy flows.