Crude Oil Soars After US Strikes Iranian Targets

Crude Oil surged on Tuesday after US Central Command confirmed that American forces had begun striking Islamic Revolutionary Guard Corps targets in southern Iran. The attacks, which were part of a campaign to prevent Iran from rebuilding its radar and missile capability, were aimed at the Strait of Hormuz, a critical waterway for global oil exports. West Texas Intermediate (WTI) oil prices jumped more than $1.20 in just three consecutive five-minute bars, reaching a session high near $89.00 before giving back some of those gains.

The targets included Bandar Abbas, Minab, Qeshm, and Sirik inside the strait, as well as Jask, Konarak, and Chabahar beyond it. These locations are significant because they represent Iran's terminal on the Gulf of Oman and its only ocean port outside the Persian Gulf, respectively.

The stated objective of the campaign is to make the Strait of Hormuz passable, which could lead to increased oil exports rather than decreased ones. This has led some analysts to suggest that the market is pricing in a direction of travel rather than a specific outcome.