US-Iran Tensions Push Oil Prices to $96 per Barrel Amid Strait of Hormuz Fears

Oil prices surged to over $96 per barrel as renewed US-Iran tensions pushed energy markets higher.

The price hike was driven by concerns over supply disruptions through the Strait of Hormuz, a crucial waterway that accounts for one-fifth of global energy supplies.

Washington struck military targets in Iran after claiming they had laid mines in the Strait, prompting Tehran to retaliate with strikes on US military bases in Jordan, Bahrain, and Kuwait.

The latest round of military action has intensified market fears over a prolonged West Asia conflict, which has already hampered vessel movement through the Hormuz passage.

ING commodities strategists Warren Patterson and Ewa Manthey noted that the key factor is whether this escalates further rounds of strikes from both sides, leaving shippers hesitant to navigate the Strait.