Oil Prices Spike as Strait of Hormuz Tensions Ignite

WTI front-month futures climbed 2.47% to $85.46 per barrel, while Brent rose 2.71% to $90.49. The volatility follows a U.S. strike on two Iranian rocket launchers on Larak Island, an action CENTCOM characterized as a response to imminent threats of minelaying. Iran countered by targeting U.S. bases in Jordan with ballistic missiles and drones, though Jordanian air defenses reported the interception of eight projectiles.

This cycle of violence complicates the U.S. strategy of transitioning from direct military engagement toward intensified economic sanctions. Despite the price jump, current levels remain suppressed by a 4% decline recorded last week. Physical market indicators suggest underlying fragility, as vessel traffic through the Strait has dwindled to approximately five ships per day. With reports of unidentified projectiles striking tankers and a sustained U.S. blockade impacting 83 commercial vessels, the market is bracing for further instability in one of the world's most vital energy corridors.