- Brent crude futures rose 5.2% to $88.46 a barrel in early trade
- Tensions in the Middle East raised fears of oil supply disruptions
- Iran launched a ballistic attack on US military sites in Jordan
US President Donald Trump has warned of military action against Iran following Tehran's missile attack on American military targets in Jordan, marking a sharp escalation in tensions across the Middle East and raising fresh concerns over global oil supplies.
The fresh geopolitical uncertainty rattled energy markets, with Brent crude futures surging 7.37% to $90.29 a barrel.
Oil prices extended gains after Trump's warning of a strong military response, as investors weighed the risk of prolonged disruptions to crude exports from the Gulf region.
Speaking to Fox News, Trump said Washington would respond decisively to the attack.
"We'll be hitting Iran hard," he said, adding that the US military would launch strikes against Iran in retaliation for attacks on American installations in Jordan.
The warning came after Iran's Islamic Revolutionary Guard Corps (IRGC) claimed responsibility for firing several ballistic missiles at a US airbase and the US Central Command facility in Jordan.
Jordan's military said it intercepted five incoming missiles, preventing major damage.
The escalation follows coordinated US and Saudi airstrikes on Iran-backed militia positions in Iraq.
According to the US military, the operation targeted logistics hubs and weapons storage sites linked to Iran-aligned armed groups.
Iraq's Popular Mobilisation Forces (Hashed al-Shaabi) said at least 20 of its fighters were killed across multiple provinces, calling the strikes a "dangerous escalation."
Saudi Arabia said the action came after repeated attacks by Iran-backed militias on its oil infrastructure, including attempted drone strikes.
Meanwhile, tensions remain elevated around the Strait of Hormuz, a critical global oil transit route.
Iran said it had intercepted and halted three tankers in the strategic waterway, while rejecting an Omani proposal aimed at restoring normal shipping through the strait, further heightening fears of supply disruptions.
The developments coincided with Israeli Prime Minister Benjamin Netanyahu's meeting with Trump in Washington.
Both leaders described the discussions as productive, with Iran's nuclear programme and regional security featuring prominently in their talks.
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