Media reports indicate that the US and Israel launched a fresh wave of airstrikes across Iran over the weekend, targeting key oil depots. Analysts warn that such disruptions to energy supplies could push up costs for consumers and businesses worldwide, according to the BBC.

In early Asian trading, Brent crude rose nearly 24% to $114.74 a barrel, while Nymex light sweet crude increased more than 26% to $114.78. The surge comes amid ongoing disruptions to shipments through the Strait of Hormuz, one of the world’s most strategically sensitive shipping routes.

Strategic importance of the Strait of Hormuz

The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and the broader Arabian Sea. Its narrow channel serves as the primary route for oil exports from major producers including Saudi Arabia, Iraq, Kuwait, and the United Arab Emirates.

While analysts note that a closure of the strait would not block main east-west shipping lanes between Asia and Europe, it would severely restrict energy exports from Gulf countries. The Persian Gulf itself functions almost like a maritime cul-de-sac, bordered by Iran, Iraq, and Kuwait, making access through the strait critical for regional oil exports.

Experts warn that if movement through the Strait remains blocked until the end of March, oil prices could soar above $150 a barrel. Adnan Mazarei of the Peterson Institute for International Economics told BBC that the price jump was expected given halted production in some Gulf countries and the likelihood of a prolonged conflict.

“People are realizing that this won’t end quickly,” he said, adding that promises of insurances and objectives laid out by the US are “becoming more unrealistic.”

Donald Trump reacts to the oil prices spike

US President Donald Trump responded to the surge in oil prices on Truth Social, stating:

"Short-term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A. and world safety and peace. ONLY FOOLS WOULD THINK DIFFERENTLY!"