Oil Above $90 as U.S.-Iran Escalation sends prices soaring

WTI has climbed above the $90 mark while Brent reached $98.44 following attacks on Saudi oil tankers and renewed threats from President Donald Trump toward Iran. Global energy markets are experiencing one of their sharpest rallies in recent months, with Brent crude surging to more than $98 per barrel and WTI gaining 3.8% to $90.14 per barrel. The psychologically important $100-per-barrel threshold is now within reach, fueling expectations of further upside pressure.

The latest price surge has been driven by two major developments. On one hand, attacks on two Saudi oil tankers in the Red Sea have heightened fears of significant disruptions to global oil supplies. On the other, tensions between Washington and Tehran have intensified around the Strait of Hormuz, a critical artery for global energy shipments.

Against this backdrop, diplomatic and military tensions between the two countries have reached a new high after President Donald Trump threatened direct strikes on Iranian infrastructure in response to Tehran's actions targeting commercial shipping routes. Iran answered with a strong warning of its own, raising the prospect of a direct military confrontation.

As a result, trading activity has accelerated sharply, with market participants increasing both speculative and defensive positions across the futures curve in an effort to hedge against growing supply risks. The move represents one of the most significant single-day advances in the oil market since 2020.