Global oil prices soared on Tuesday, with Brent crude climbing above $84 per barrel, as escalating tensions in the Middle East heightened fears of prolonged conflict and potential disruptions to global supply.
As of 7:00 a.m. ET, the international benchmark, Brent Crude, rose 8.36 per cent to $84.24 per barrel. The U.S. benchmark, West Texas Intermediate (WTI), also advanced sharply, crossing the $75 threshold to trade at $76.93 per barrel, up 8 per cent on the day.
The surge followed a nearly 10 per cent jump on Monday, as markets reacted to remarks by U.S. President Donald Trump indicating that the ongoing military campaign in Iran, dubbed "Epic Fury," could extend beyond the initially projected four to five weeks.
"Whatever it takes. ... Right from the beginning, we projected four to five weeks, but we have capability to go far longer than that," Trump said late Monday, signaling the possibility of a drawn-out confrontation.
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Investor anxiety intensified after Iran announced it was closing the strategic Strait of Hormuz, a narrow waterway between Iran and Oman through which roughly 20 per cent of global oil and gas trade passes. The move came in retaliation for joint U.S.-Israeli strikes.
Ebrahim Jabbari, a senior adviser to the commander-in-chief of the Islamic Revolutionary Guard Corps (IRGC), was quoted as warning that Iran would attack and set ablaze any vessel attempting to cross the strait.
"The Strait is closed. If anyone tries to pass, the heroes of the Revolutionary Guard and the regular navy will set those ships ablaze," he reportedly said.
However, the United States Central Command disputed Iran's claim, with a senior U.S. military official telling Fox News that the strait remains open.
Despite the conflicting statements, shipping activity in the corridor has effectively stalled, as tanker operators and energy traders remain wary of testing the threats. Analysts say even the perception of risk is enough to disrupt flows and tighten global supply.
Market watchers warn that oil prices could climb to $100 per barrel or even $120 if tanker traffic through the Strait of Hormuz is not restored within weeks. With limited spare capacity and few viable alternative routes, any sustained disruption could have far-reaching implications for global energy markets and inflation.
