Global oil markets experienced significant volatility on Wednesday, with Brent crude surging above $96 per barrel. The spike in prices followed a declaration by former US President Donald Trump, who asserted that Washington had achieved "almost total control" over the strategically vital Strait of Hormuz.
Trump's comments, made in a Truth Social post, coincided with a third consecutive session of rising oil prices, fueled by escalating tensions between the United States and Iran. US West Texas Intermediate (WTI) crude also saw a notable increase, climbing to $91.46 per barrel.
Renewed Hostilities Drive Market Jitters
The latest surge in oil prices is directly linked to a fresh outbreak of hostilities between the US and Iran. According to reports, US military strikes were launched in response to alleged Iranian attempts to lay mines in the Strait of Hormuz and a previous attack on a US base. Trump explicitly warned of further American action should Iran engage in any offensive maneuvers.
US Central Command (CENTCOM) confirmed that the strikes targeted the Islamic Revolutionary Guard Corps (IRGC) following recent attempted attacks against commercial shipping in the Strait and against American service members deployed in the region.
Iran's Response and Strategic Importance
In retaliation, Iran's IRGC claimed to have targeted an American military base in Jordan with ballistic missiles, causing reported casualties. Iranian state media also reported a large-scale drone attack on a US base in Bahrain. The Jordanian military stated it intercepted 10 out of 13 incoming ballistic missiles, with US officials reporting no American casualties from these specific attacks so far.
The Strait of Hormuz, a narrow sea lane connecting the Persian Gulf with the Arabian Sea, is a critical choke point for global oil shipments. Before the current conflict, approximately 20% of the world's consumed oil passed through this waterway. Iran has reportedly closed it to commercial shipping since the conflict began, heightening fears of a severe disruption to global crude supplies. This latest exchange of hostilities marks the first significant flare-up since July, further exacerbating market jitters and prompting traders to seek alternative crude shipments.