OIL prices surged on Thursday after the United States launched a new round of military strikes against Iran, fuelling concerns that the escalating conflict could become prolonged and place sustained pressure on global energy supplies.
The rally reflected growing market anxiety over potential disruptions to shipping routes and production flows in the Gulf region, particularly through the strategically vital Strait of Hormuz.
CNBC cited that U.S. crude futures for July rose 2.94 per cent to US$92.68 per barrel, while Brent crude, the global benchmark, climbed 2.52 per cent to US$95.45 per barrel for August delivery.
The price spike followed confirmation from the U.S. military that additional operations had been conducted under presidential direction.
In a statement posted on X, U.S. Central Command said American forces had begun “launching additional self-defense strikes today at 5:15 p.m. ET against multiple targets in Iran at the Commander in Chief’s direction.”
It added that the action was taken “in response to Iran’s unwarranted and continued aggression.”
The renewed escalation comes amid heightened tensions across the Gulf, with Iranian state media reporting that Tehran had launched missile and drone attacks targeting U.S. vessels operating in the Strait of Hormuz.
The waterway, through which a significant portion of the world’s oil shipments pass, remains at the centre of geopolitical risk calculations as both sides intensify military activity in the region.
Earlier in the day, U.S. President Donald Trump warned that Washington was prepared to step up its military response unless Tehran moved swiftly towards a diplomatic agreement with the United States.
Despite the sharp escalation, energy consultancy Rystad Energy said the global oil market is currently better positioned to withstand disruptions than during previous geopolitical shocks.
The firm pointed to record levels of U.S. crude exports, weaker Chinese demand growth and the availability of alternative export routes that reduce dependency on the Strait of Hormuz as key stabilising factors.
However, Rystad Energy senior vice president Jorge Leon cautioned that the geopolitical outlook has deteriorated, reducing the likelihood of a near-term diplomatic breakthrough.
He warned that oil markets could remain highly volatile as investors weigh whether the latest confrontation remains contained or evolves into a broader and more prolonged conflict.
Market analysts say the current environment leaves crude prices vulnerable to sharp swings, with sentiment driven as much by political developments as by underlying supply and demand fundamentals.
As tensions between Washington and Tehran continue to escalate, traders are increasingly focused on the risk that further disruption to shipping routes or production infrastructure could trigger another sustained energy shock, despite structural buffers that may limit the severity of immediate shortages. - June 11, 2026
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