Oil prices, specifically Brent crude, shot up above $80 a barrel yesterday, reaching a two-week high, after the US renewed strikes against Iran. This surge reversed a two-month decline and threatened to undermine an interim agreement to end the conflict, though prices have since fallen to below $78 a barrel. The renewed conflict has raised fears that Iran could again close the Strait of Hormuz, a critical passageway for a fifth of global oil supplies, potentially triggering a new energy crisis.
American forces launched a second consecutive night of bombardments against Iran after President Donald Trump declared the ceasefire “over,” calling the strikes “retribution” for Iranian attacks on ships in the Strait of Hormuz. Trump, who labeled Iran's leaders “scum” and “sick people,” warned of further action if Tehran retaliated, while also stating that “anything that happens is going to be over very quickly.” US Central Command justified the bombing campaign as a move to "further degrade [Iran’s] ability to threaten freedom of navigation."
The International Monetary Fund (IMF) has warned that the resurfacing conflict risks exacerbating inflation, disrupting supply chains, and negatively impacting financial markets. Traders are concerned about rapid escalation, especially with the US also revoking a temporary waiver of sanctions on Iranian oil that had been granted as part of broader negotiations.
