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Brent crude surged above $100 a barrel on Tuesday, hitting $102.69, while US West Texas Intermediate rose to $95.92, amid escalating tensions over the Strait of Hormuz.
The spike follows President Donald Trump’s call for a naval coalition to escort tankers through the strategic waterway, which remains effectively closed after fresh Iranian attacks.
Trump criticised allies for hesitating to commit warships, arguing it exposed a “lack of reciprocity in defence agreements with the United States.”
Key allies have so far refused to deploy vessels. European powers and South Korea cited fears of entanglement in the three-week conflict, while the EU rejected expanding naval operations. The UK continues to review the situation but has yet to take action.
The closure of the strait, which handles 20% of global oil and LNG, has already halved UAE production and reduced Iraqi output from 4.3 million to 1.2 million barrels per day.
Iranian officials described the situation as a “high-risk opportunity,” warning that the strait “cannot be as it was before,” highlighting the growing volatility in global energy markets.
Oil analysts warn that prolonged disruption could drive prices even higher, raising concerns of a global energy squeeze.
Ambassador to Turkmenistan Ali Mojtaba Rouzbehani said: “I have a proposal for Trump: if he wants stability and passage through the Strait of Hormuz, he must ensure that his military forces withdraw from the strait.
“We will defend its stability and security.”
AVP Kaynat Chainwala said: “Prices briefly pulled back below $97 earlier as traders took note of continued crude exports flowing from Iran’s Kharg Island despite recent US strikes.
“The dip was short-lived, however, as broader risk sentiment reasserted itself.”
The Express reported, analyst Matt Britzman said: “Geopolitical tensions ramped up with Trump looking to rally support for a coordinated plan to reopen the Strait of Hormuz.
“Even if the Iran conflict comes to a swift resolution, ongoing concerns about stretched valuations and fresh warnings in private credit could keep US markets from breaking into a full-blown rally.”
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