Oil prices surge above $100 per barrel after US strikes in Iran raised fears over Middle East tensions and supply disruptions

Global oil prices climbed sharply on Tuesday after the United States carried out military strikes in southern Iran, heightening fears over the stability of a fragile ceasefire and the future of ongoing peace negotiations between Washington and Tehran.

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From about $97 per barrel on Monday, global benchmark Brent crude futures rose by roughly 3.5 per cent to around $100 per barrel as traders reacted to renewed tensions in the Middle East.

According to reports, US forces targeted missile-launch sites and other positions in southern Iran on Monday in what Washington described as defensive operations aimed at protecting American troops in the region.

In a statement, the United States Central Command said the strikes were necessary to counter threats from Iranian forces.

“US forces conducted self-defense strikes in southern Iran today to protect our troops from threats posed by Iranian forces. Targets included missile launch sites and Iranian boats attempting to emplace mines,” CENTCOM spokesman, Tim Hawkins, said.

The latest escalation came despite growing expectations that the United States and Iran were nearing an agreement that could end the three-month conflict and restore full shipping activities through the Strait of Hormuz.

Iran, however, accused Washington of breaching the ceasefire arrangement with the attacks in Hormozgan province, where local media reported explosions early Tuesday.

Iran’s Foreign Ministry described the strikes as a “gross violation” of the ceasefire that has remained in place for nearly seven weeks, according to Reuters.

Both sides had earlier indicated progress on a proposed memorandum of understanding intended to halt hostilities and reopen the strategic Strait of Hormuz for the uninterrupted movement of oil shipments.

Negotiators were also expected to continue discussions over more contentious issues, including Iran’s nuclear programme and the release of billions of dollars in frozen Iranian assets.

The war began after US and Israeli strikes on Iran on February 28, triggering a severe disruption in global energy markets and pushing up the costs of fuel, fertiliser and food worldwide.

Iran later responded with drone and missile attacks targeting Gulf states hosting American military bases, intensifying fears of a wider regional conflict.

Traffic through the Strait of Hormuz, which handles nearly one-fifth of global oil and liquefied natural gas trade, has remained significantly below normal levels since the conflict erupted.

Analysts warned that the renewed military action could undermine ongoing diplomatic efforts and trigger fresh volatility in international oil markets if tensions continue to rise.

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The oil prices surge also renewed concerns among import-dependent economies already grappling with inflationary pressures linked to energy and supply chain disruptions.