Crude oil jumps as U.S. expands strikes on Iran

Crude oil extended its recent rally on Tuesday after the United States launched another wave of attacks on Iran, pushing traders to reassess the risk of disruption across key Middle East shipping routes. The move intensified worries that tensions around the Strait of Hormuz could linger and keep supply conditions tight.

Middle East tensions drive the move

West Texas Intermediate for October delivery was last up $4.27, or 4.98%, at $90.03 a barrel. The price jump followed a weekend exchange of strikes between the U.S. and Iran that revived concerns about a broader regional confrontation after a relatively calm period of more than a month.

The latest escalation began after U.S. forces struck Iran’s Larak Island on Sunday, saying the action was meant to block efforts to relay sea mines in the Strait of Hormuz. Iran responded by attacking U.S. air bases at King Hussein and Al Azraq in Jordan, raising the stakes for energy markets that depend on free passage through the waterway.

President Donald Trump said in a Fox News interview that the U.S. would hit Iran hard, but said the renewed strikes did not amount to a return to full-scale war. He later said on Truth Social that the U.S. had begun large and powerful strikes on Iran in retaliation for attacks on U.S. bases in Jordan.

Market focus shifts to supply risk

Reports said the latest attacks hit targets along Iran’s southern coast, including Bandar Abbas, Jask, Chabahar, Konarak, Minab, Sirik and the island of Qeshm. Those locations matter to traders because they sit close to energy infrastructure and shipping lanes tied to the Gulf export system.

The immediate market reaction reflected a simple calculation: if the conflict threatens traffic through the Strait of Hormuz, then crude deliveries from the region become harder to price and more vulnerable to interruption. That is why the reopening of the strait soon moved out of investors’ expectations and why oil prices continued to climb after Monday’s surge.

For broader markets, the spike is a reminder that geopolitical shocks can rapidly overshadow normal supply-and-demand analysis. Energy traders will now be watching whether the confrontation remains contained or widens further, with any sign of disruption to regional shipping likely to keep crude prices elevated.

This article is not investment advice and recommends no asset, level or direction; a single session's move is not evidence of a trend. For background see Markets, Bear Market, BIST 100, and for terms the finance glossary.