Oil prices moved higher on Friday night after fresh military exchanges between the United States and Iran disrupted calm in the Strait of Hormuz, a route that carries a significant share of global crude shipments. The market reaction was immediate as traders reacted to the risk of supply interruption.
As at the time of writing 05:59 am (WAT), Brent crude was trading 2.64% higher at $102.70 per barrel, while West Texas Intermediate (WTI) rose 1.95% to $96.66 per barrel, according to Oilprice.com. The gains extended earlier momentum built on rising geopolitical tension in the Gulf.
The latest spike followed reports of direct exchanges of fire between U.S. and Iranian forces in and around the Strait of Hormuz. U.S. Central Command said its naval units came under missile, drone and small-boat attacks while escorting vessels through the waterway.
Washington said it responded with targeted strikes on what it described as Iranian military assets involved in the confrontation. It maintained that the actions were defensive and aimed at neutralising immediate threats to its ships operating in the area.
Iran, however, accused the United States of breaching an already fragile ceasefire arrangement. Tehran claimed its vessels and nearby assets were targeted first, escalating tensions that have remained unstable for weeks despite diplomatic talks in the background.
Speaking on the development, former U.S. President Donald Trump insisted American forces successfully repelled the attacks and that no U.S. destroyers were damaged. Iran has rejected that account, further deepening uncertainty over the status of the ceasefire.
According to Oilprice.com, the renewed fighting has put traders back on edge, with the Strait of Hormuz once again becoming the focal point of global oil risk pricing. With supply security in question, the market response has been swift, pushing Brent back above the $100 mark.