Fresh uncertainty over US-Iran peace talks and renewed military escalation in the Gulf pushed Brent crude futures back above the $100-per-barrel mark on Tuesday, rattling global energy markets.
Benchmark Brent for July delivery surged more than 4% to trade near $100.12 at around 11:30 am EST. This came after Iranian Supreme Leader Mojtaba Khamenei issued a statement, noting that there will be no safe haven for the US military in the Middle East.
His statement came hours after US forces carried out overnight “defensive strikes” on an Iranian missile site and two Islamic Revolutionary Guard Corps (IRGC) mine-laying boats.
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Washington said the targets posed a threat to American forces and shipping routes in the region.
The escalation triggered fresh concerns over the security of the Strait of Hormuz, a critical maritime chokepoint through which nearly one-fifth of global oil supplies move daily.
Tehran accused Washington of violating the ceasefire understanding and warned of retaliation.
In a strongly worded statement, Iran said it would not leave any “aggression unanswered” and vowed to defend its sovereignty “with utmost determination”.
Adding to investor anxiety, Mojtaba Khamenei — son of Iran's Supreme Leader — declared that regional countries would no longer serve as “shields for US bases”, signalling a tougher regional posture from Tehran.
The geopolitical uncertainty intensified further after reports of an explosion damaging an oil tanker near Oman, close to the Strait of Hormuz.
Though the crew was reported safe, the incident revived fears of disruptions to global crude shipments.
Markets briefly eased earlier on hopes that Washington and Tehran were close to a diplomatic breakthrough after US Secretary of State Marco Rubio said a deal could take “a couple of days” to finalise.
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However, conflicting signals from both sides and continuing military activity quickly pushed oil prices higher again.
Analysts say the sharp rebound in crude reflects how geopolitical risks are currently outweighing traditional supply-demand fundamentals in global energy markets.
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