Crude Prices Surge as US-Iran Tensions Escalate Amid Ongoing Middle East Risks
Renewed US-Iran hostilities have driven crude oil prices above $86 per barrel. The price hike comes after US forces struck two Iranian rocket launchers on Larak Island, prompting Iran to retaliate with attacks on targets in the UAE and Jordan. This marks a resumption of US-Iran hostilities after nearly a month of relative calm.
Despite the tensions, oil shipments continued through the Strait of Hormuz, with major Gulf producers like the UAE, Saudi Arabia, Kuwait, and Iraq still exporting some volumes. However, a supertanker caught fire in the strait after striking two naval mines, highlighting the ongoing risks to shipping through this key waterway.
Refinery strikes in Russia have further tightened global refining capacity, pushing refined-product margins to fresh highs. Brent crude is down around 40% from its 2026 high of $118 per barrel recorded on March 31 and nearly 28% below its recent high of $98 per barrel touched on June 3.