US-Iran Tensions Fuel Oil Price Surge Amid Strait of Hormuz Concerns

Oil prices have stabilized slightly after a strong rally in the previous session driven by escalating tensions between the US and Iran. The global oil benchmark, November futures, added 0.6% to settle at $95.25 a barrel, while October futures climbed 0.5% to settle at $90.63 a barrel.

The surge in prices was triggered by a resurgence in military strikes between the two nations, with US Central Command confirming new attacks against Islamic Revolutionary Guard Corps targets. Iranian state media reported that 18 people were killed and 108 injured in the strikes, which also hit non-military targets in Hormozgan and a wedding ceremony in Sirik.

President Donald Trump took to his Truth Social service to suggest renaming the Strait of Hormuz to 'TRUMP STRAIT', stating that the US had taken out new equipment built by Iran along the waterway. The renewed confrontation has raised concerns about further restricting tanker movements through the strait and deepening an already significant supply shock.