Global crude oil prices rebounded sharply in early Tuesday trading after the United States launched military strikes on Iranian targets near the Strait of Hormuz, reigniting supply fears in global energy markets barely 24 hours after prices tumbled on optimism over a possible peace agreement.
As at the time of writing 06:02 am (WAT) Brent crude, the international benchmark, rose 2.34 per cent to $98.39 per barrel, recovering part of Monday’s heavy losses when prices fell nearly seven per cent on hopes of a diplomatic breakthrough between Washington and Tehran. West Texas Intermediate, WTI, also climbed in Asian trading, though it remained about five per cent below its opening level for the week at $91.79 per barrel.
The latest market rally followed confirmation by the U.S. Central Command, CENTCOM, that American forces struck Iranian missile launch positions and vessels near the Strait of Hormuz. According to the U.S. military, the operation was “designed to protect our troops from threats posed by Iranian forces.”
Iranian media reported explosions around Bandar Abbas, a strategic southern city close to the Strait of Hormuz, although authorities did not immediately disclose the exact cause of the blasts.
The renewed military action has unsettled traders because the Strait of Hormuz remains one of the world’s most critical energy corridors, handling a substantial share of global crude oil and liquefied natural gas exports. Any threat to shipping through the narrow waterway often triggers sharp movements in oil prices.
The escalation also came at a delicate point in ongoing negotiations. Iranian parliamentary speaker Mohammad Bagher Ghalibaf and Foreign Minister Abbas Araghchi were reportedly in Qatar seeking to conclude discussions aimed at extending the ceasefire and reopening the Strait. U.S. Secretary of State Marco Rubio had earlier suggested a deal could be close, although negotiators were said to be focusing first on a 60-day ceasefire extension.
Fresh reports nevertheless suggest diplomatic channels remain active. A Nikkei report, citing a Middle East diplomatic source, said Iran could agree to clear naval mines from the Strait within 30 days under a proposed framework, paving the way for normal commercial shipping operations to resume.
There are already early signs of movement in regional energy flows. Shipping data showed several LNG carriers recently passed through the Strait bound for Pakistan, China and India, while a supertanker carrying Iraqi crude reportedly completed transit after being stranded for almost three months.
For oil markets, the latest rebound highlights how quickly sentiment continues to swing between diplomacy and conflict. While hopes of a negotiated settlement remain alive, traders are responding aggressively to every military and political signal, with volatility expected to persist until a durable reopening of the Strait of Hormuz is secured.