07.04.2026 16:25

The price of West Texas Intermediatebriefly topped $116 per barrel while Brent surged past $110, underscoring a rapid rally sparked by mounting geopolitical tension.

U.S. forces launched precision strikes on Kharg Island, Iran’s primary export hub, targeting military installations that officials said were involved in covert operations. Although the attacks avoided oil‑related infrastructure, the move reverberated instantly through global oil markets, prompting a sharp uptick in benchmark prices.

Strategically situated on the Persian Gulf, Kharg Island handles a sizeable portion of Iran’s crude shipments; any disturbance there reverberates across supply chains. In response, traders moved swiftly to embed a risk premium, propelling both spot and futures contracts higher within hours. Even as Tehran reported intermittentexplosions near a railway bridge, the sense of looming disruption persisted.

The crisis has centered on the Strait of Hormuz, through which roughly one‑third of world oil flows. President Trump issued an ultimatum for Iran to restore the waterway by 8 p.m. EDT, warning that “a whole civilization could die tonight” if negotiations stalled, and hinted at further punitive measures. A recent tally showed only eight vessels transiting the strait on Monday—a stark deviation from the typical dozen‑plus daily crossings—highlighting the tangible choke‑point pressure that is now shaping market expectations and fueling additional volatility.