US crude futures increased by nearly 3% to $90.76 a barrel, while Brent crude, the international benchmark, climbed over 2% to $93.80 a barrel by 12:02 p.m. ET.
The rise in prices was triggered after Trump indicated that further attacks on Iran were forthcoming, stating, “We hit them hard yesterday, and we’re going to hit them hard again today. We’re going to be attacking them and attacking them very hard.”
This escalation follows US military strikes on Iranian positions near the Strait of Hormuz. Trump had previously warned on social media that Iran “will have to pay the price” for delays in negotiating a deal with the US.
According to the US Central Command (CENTCOM), American forces conducted strikes on Tuesday night after an Army Apache helicopter was downed the previous day. CENTCOM described the operation as a defensive and measured response to what it termed Iranian aggression.
Regional tensions further escalated as Iran initiated missile attacks aimed at Bahrain, Kuwait, and Jordan, nations hosting US military personnel. These strikes represented one of the most significant escalations since the conflict began, occurring despite a fragile two-month ceasefire under constant strain.
Earlier this week, Iran and Israel also engaged in exchanges of attacks, highlighting the increasing instability in the region.
The resumption of hostilities has raised alarms over possible disruptions to energy flows through the Strait of Hormuz, a vital route for global oil shipments, leading traders to drive crude prices up amid fears of a drawn-out conflict.
