Oil prices jump after US launches new attacks on Iran

Oil prices surged after the United States launched new military strikes against Iran, targeting a site in the strategic port of Bandar Abbas and heightening fears over the security of global energy supplies [1]. The U.S. Central Command stated its forces also shot down four Iranian drones near the Strait of Hormuz [1]. The global benchmark Brent crude rose by 3.75% to $97.83 per barrel, while U.S.-traded crude increased by 4% to $92.22 [1]. The attacks occurred despite an ongoing ceasefire and talks between the two nations aimed at ending a three-month conflict that has effectively closed the Strait of Hormuz, a chokepoint for around one-fifth of the world's oil and liquefied natural gas supplies [1]. The conflict has already caused severe market disruptions. A recent closure of the Strait on 4 March 2026 stranded oil and LNG exports, forcing Brent crude to surge past $120 per barrel and triggering a declaration of force majeure by a major exporter [3]. The International Energy Agency has characterized the resulting supply disruption as the "largest supply disruption in the history of the global oil market" [3]. Oil prices are fundamentally determined by global supply and demand, with the Organization of the Petroleum Exporting Countries (OPEC) wielding considerable influence [2]. The current hostilities are the latest chapter in a long and troubled history between Iran and the United States. The two nations have had no formal diplomatic relations since 7 April 1980 [4]. Iranian explanations for the animosity include U.S. support for Israel and a perception of American attempts to establish a "global dictatorship," while Western analyses often cite the Iranian government's use of an external adversary to justify domestic policies [4]. The immediate military action on 28 February was followed by Iranian threats to attack vessels using the Hormuz shipping route [1].