Oil prices are climbing back toward $100 per barrel after new U.S. military strikes in southern Iran, escalating fears of supply disruptions across the Middle East.
Washington described the operation as a “defensive action,” targeting vessels allegedly involved in mine-laying activities along with missile launch sites linked to Iranian forces.
The escalation comes despite ongoing diplomatic negotiations, with global markets reacting nervously to the possibility of wider instability in one of the world’s most critical oil-producing regions.
Analysts warn that sustained increases in crude prices could fuel broader inflation pressures worldwide, potentially forcing central banks to keep interest rates higher for a longer period.
Energy markets are now entering what traders are calling an “Abnormal Situation” phase, where geopolitical risk is once again driving price momentum more than economic fundamentals.