Oil Prices Surge After US Strikes on Iranian Military Site in Bandar Abbas

Oil prices climbed sharply after the United States launched fresh attacks on Iran, striking a military installation in Bandar Abbas, a strategically important port city on Iran’s southern coast.

The US Central Command (Centcom) said American forces also intercepted and destroyed four Iranian drones “that posed a threat around the Strait of Hormuz”.

Following the attacks, the global benchmark for oil prices, Brent crude, jumped 3.75% to $97.83 (£73.15) per barrel. Meanwhile, US-traded crude rose by 4% to reach $92.22 per barrel.

The latest military action took place despite an ongoing ceasefire between Washington and Tehran, as both sides continue negotiations aimed at ending the conflict that has lasted for three months. The prolonged confrontation has effectively shut down the Strait of Hormuz, a vital shipping route that plays a crucial role in global energy supplies, driving energy costs higher worldwide.

Typically, around one-fifth of the world’s oil and liquefied natural gas (LNG) supplies pass through the narrow waterway.

Tensions in the region intensified after the United States and Israel launched airstrikes on Iran on 28 February. In response, Tehran warned that it could target vessels travelling through the Strait of Hormuz, raising fears over the security of one of the world’s most important energy corridors.

By fLEXI tEAM