Oil prices surge as brent gains 3% amid Iran–US air strike escalation

Global oil markets rose sharply on Friday, with Brent crude futures jumping as much as 3% after renewed military exchanges between the United States and Iran raised concerns over stability in the Strait of Hormuz and the durability of a fragile ceasefire.

Brent crude was trading at $101.47 per barrel, up $1.41 or 1.41% by 10:51 CDT (1551 GMT), after touching a session high gain of 3%. U.S. West Texas Intermediate (WTI) stood at $95.71 per barrel, up 90 cents or 0.95%.

Despite the rebound, both benchmarks were still on track for weekly declines of more than 6%, reflecting heightened volatility in global energy markets.

Market participants attributed the price swings to uncertainty surrounding shipping flows through the Strait of Hormuz, a critical route for global oil transport.

Traders said sentiment remained driven by geopolitical headlines, with limited clarity on the trajectory of the ceasefire and supply security.

According to market analysts, shipping activity in the Persian Gulf has continued, but concerns persist over potential disruptions to exports from Gulf producers.

The latest escalation follows reported clashes between U.S. and Iranian forces in the Gulf region and renewed attacks on the United Arab Emirates, while Washington awaited Tehran’s response to ceasefire proposals linked to earlier joint U.S.–Israeli strikes in Iran.

U.S. President Donald Trump said the ceasefire remained in place and attempted to downplay the latest exchange.

Analysts noted that market focus remains on potential supply restoration from Gulf producers, inventory levels ahead of peak demand season, and possible sanctions scenarios depending on the outcome of the conflict.

Oil market observers also highlighted persistent uncertainty around the pace of any geopolitical resolution, with prices reacting strongly to policy signals and diplomatic developments.

Meanwhile, U.S. regulators are investigating approximately $7 billion in oil trades placed shortly before key policy announcements related to the Iran conflict, according to a Reuters report.

The trades, mostly short positions on the ICE and CME exchanges, were executed ahead of announcements involving attacks, ceasefires and policy shifts that triggered sharp movements in oil prices.