Crude oil prices surged dramatically toward $120/barrel as key Gulf producers curbed output, the Strait of Hormuz remained functionally closed, and the US threatened further escalation in a conflict that has severely disrupted global energy markets.
Brent crude surged as much as 28% to $118.73 a barrel, while West Texas Intermediate (WTI) leaped 31%. The closure of the Strait of Hormuz has caused storage facilities to rapidly reach capacity, prompting Kuwait and the United Arab Emirates to begin reducing output.
US President Donald Trump addressed the price shock, characterising the short-term market movements as a 'very small price to pay' for peace and global security.
The US is considering expanding its target list to previously unthreatened areas and groups in Iran, amid rising volatility and supply chain bottlenecks.
Iranian President Masoud Pezeshkian vowed not to back down, as the US State Department ordered the departure of US employees in Saudi Arabia.
