LONDON — Global oil markets surged on Sunday as renewed military escalation involving Iran and mounting uncertainty over shipping through the Strait of Hormuz intensified concerns about disruptions to one of the world's most important energy transit routes.
Brent crude and U.S. West Texas Intermediate futures extended recent gains as traders responded to heightened geopolitical risk after the United States launched new strikes on Iranian targets and Tehran reiterated that the Strait of Hormuz would remain closed to unauthorized shipping, according to Iranian authorities. The developments followed days of attacks on commercial vessels and retaliatory military action that have raised fears of prolonged disruption to regional energy supplies.
The Strait of Hormuz carries a significant share of globally traded crude oil and liquefied natural gas, making any threat to navigation a major concern for energy markets. While Iran has declared restrictions on maritime traffic, U.S. Central Command has said commercial shipping continues to transit the waterway, highlighting conflicting accounts over the operational status of the strategic chokepoint.
Oil prices had already climbed sharply during the past week after attacks on commercial tankers near the strait reignited concerns over supply security. Analysts said the latest military escalation added a geopolitical risk premium as market participants assessed the possibility of further disruptions to exports from Gulf producers.
Energy analysts noted that sustained interruptions to tanker traffic could tighten global crude supplies despite strategic petroleum reserves and alternative export routes available to some regional producers. Previous assessments by international energy experts have warned that major disruptions in the Strait of Hormuz could have significant consequences for global oil balances because of the volume of crude transported through the passage.
Governments in the region continued diplomatic efforts to contain the crisis, while shipping companies and insurers monitored security conditions before determining future operations in Gulf waters. Officials have not announced a resolution to the dispute, and commercial operators remain alert to further military developments.
As of Sunday, no internationally verified confirmation indicated that normal maritime operations had fully resumed across the Strait of Hormuz. Markets remained focused on official military statements, diplomatic negotiations, and any changes in shipping activity that could affect global energy supplies.
