Oil Prices Soar as US-Iran Tensions Escalate Amid Fresh Strikes
President Donald Trump announced on February 28 that the US would launch 'major combat operations' against Iran, targeting military, government, and infrastructure sites. The operation was followed by a series of joint US-Israeli strikes aimed at crippling Iran's military capabilities.
As tensions escalated, the US and Iran entered negotiations in June to reach a war-ending deal based on a memorandum of understanding signed by both countries. However, talks broke down as the two nations continued to exchange strikes, with the strategic Strait of Hormuz serving as a major flashpoint.
In August, Trump vowed to launch a 'crushing economic operation' to force Tehran into submission. The US president has repeatedly denied reports that US munitions stockpiles are dwindling, stating on Monday that he had received a report indicating that the country is producing more 'exquisite and elite weapons than at any time in our history.'
Iranian Foreign Ministry spokesperson Esmaeil Baqaei disputed Trump's claims, saying that Iran has 'no relations whatsoever with what is unfolding in Yemen,' despite its long-standing support for the Houthi rebels. The group claimed to have launched a 'wide-scale military operation' targeting the King Khalid Air Base in southwestern Saudi Arabia on Monday.
Global and US oil prices surged early Monday morning following the attacks, with Brent crude oil prices rising over 3% to nearly $107 per barrel and WTI crude oil nearing $103 per barrel up around 3%. Omani Foreign Minister Badr Albusaidi announced that a planned meeting between Iran and regional countries had been postponed 'in the interest of consensus.'