Oil prices breach $90 as Iran targets tankers and US escalates strikes
The United States has conducted new strikes against Iran, coinciding with an increase in American casualties, while Tehran declares the Strait of Hormuz closed to all traffic.
Oil prices have surged past the $90 per barrel threshold following Iranian military strikes on tankers in the Strait of Hormuz. The escalation in energy costs coincides with a fresh wave of United States military operations against Iran, which has resulted in an increase in American casualties.
The Pentagon has confirmed that US forces have conducted strikes on Iran for a ninth consecutive night. These operations are described as punitive measures in response to the confirmation of the first US military fatality since the resumption of hostilities in the region.
Iran’s military command announced on Thursday that it will target any ship transiting the Strait of Hormuz, declaring the waterway closed to all vessel traffic. This declaration follows Iranian strikes on two vessels attempting to pass through the strategic route.
US Central Command has denied the closure of the Strait, stating that commercial ships continue to transit the area. The conflicting reports on the status of the waterway add to the uncertainty surrounding global oil supply chains.
The conflict unfolds against a backdrop of severe economic instability in Iran, characterised by hyperinflation and military uncertainty. Meanwhile, a recent Beijing summit featured discussions on trade, AI, and Strait of Hormuz security, attended by US business leaders including Elon Musk, Tim Cook, and Jensen Huang.
