Oil shoots up after US strikes Iranian nuclear sites

Brent crude’s price has leaped after the US military struck three major nuclear facilities in Iran.

IMAGE: Flags of US and Iran. Getty Images

US military launched targeted airstrikes on Iran’s nuclear facilities in Natanz, Fordo and Isfahan over the weekend, with Fordo being the primary target, US President Donald Trump said.

The move was largely anticipated, according to oil market analysts. “Since the US targeted Iranian nuclear facilities over the weekend, supply risks for energy markets have increased significantly,” ING Bank’s head of commodities strategy Warren Patterson said.

Brent crude’s price has surged amid growing uncertainty about how Iran will retaliate to the strikes, Patterson said. Meanwhile, Tehran’s government has promised retaliation, with the country’s parliament backing the closure of the Strait of Hormuz, according to media reports.

The Strait of Hormuz, located between Oman and Iran, connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. It is one of the world’s most important oil chokepoints. According to the US Energy Information Administration (EIA), crude oil and condensate transiting the Strait of Hormuz declined substantially between 2022 and 2024.

This is largely due to the repeated attacks conducted by Iran’s proxies on commercial vessels transiting the critical waterway.

Growing tensions in the shipping industry

Following the escalations over the weekend, Danish shipping firm A.P. Moller-Maersk (Maersk) has suspended port calls to Port of Haifa in Israel.

Maersk has also suspended cargo acceptance for the port, it said in an advisory.

Separately, French shipping company CMA CGM has set up a monitoring cell to keep a close watch on the developing situation in the region, it said in a statement.

Additionally, US secretary of state Marco Rubio has called on China to prevent Iran from closing the Strait of Hormuz. “I encourage the Chinese government in Beijing to call them [Iran] about that, because they heavily depend on the Straits of Hormuz for their oil,” Rubio said in an interview with Fox News yesterday.

“Iran’s Majlis or parliament has formally approved a motion to close the Strait of Hormuz in response to the US strikes but Ayatollah Ali Khamenei has not given the final go-ahead,” VANDA Insights’ founder and analyst Vandana Hari noted.

By Aparupa Mazumder

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