After the U.S. strike on Iran, oil prices surge

Oil prices posted sharp gains today following a new wave of U.S. strikes inside Iran, carried out after the downing of an American military helicopter in the Gulf of Oman area. During trading, the price of Brent crude rose by about 2% and crossed the $93 mark. At the same time, U.S. WTI crude climbed to about $90 per barrel. Later, the increases eased slightly after Washington announced that the targeted retaliation operation had ended.

According to a statement from U.S. Central Command, the strikes were carried out under the direction of President Donald Trump and in response to the downing of an Apache helicopter off the coast of Oman. The U.S. military described the operation as a measured response and said fighter jets struck Iranian air defense systems, control stations and radar sites near the Strait of Hormuz. Iran confirmed that targets in the area of Qeshm Island and in the Jask area, near the strategic shipping route, were hit. Meanwhile, Iranian state media reported that Tehran launched drones in response toward the U.S. Fifth Fleet base in Bahrain, as well as toward American military facilities in Jordan and Kuwait. The current escalation is increasing concern over further damage to the stability of the global energy market, especially around the Strait of Hormuz, one of the world’s most important shipping routes for oil and gas transport. The backdrop is a fragile ceasefire in the region, after exchanges of strikes between Israel and Iran over the past week. Markets fear that continued escalation will lead to disruptions in energy supplies and renewed pressure on fuel prices and inflation worldwide.