Global energy markets reeled Thursday after Washington launched fresh attacks on Iranian territory, triggering an immediate spike in crude prices and a surprise drop in gold, as Tehran closed the strategic Strait of Hormuz in retaliation.
Oil prices surged more than 2%, with Brent crude trading above $95 per barrel and West Texas Intermediate near $92, following overnight US strikes on multiple locations across Iran. The escalation, reported by The Straits Times, revived fears over the security of energy supplies after Iran’s decisive move to shut the world’s most critical oil chokepoint.
The US attacks the latest in a mounting pressure campaign were condemned by Tehran as a flagrant violation of sovereignty and an attempt to impose political demands through military force. Hours before the strikes, President Donald Trump warned of further action absent a political deal, while US War Secretary Pete Hegseth bluntly stated: “If we need to negotiate with bombs, we’ll negotiate with bombs.”
US Central Command claimed the strikes targeted Iranian surveillance, communications, and air defense sites. But Iranian officials have long held that negotiations under the shadow of bombardment are illegitimate, warning that such coercion only deepens regional instability.
Iran strikes back
In swift retaliation, Iranian military authorities announced the closure of the Strait of Hormuz to all shipping. Iranian media also reported that the Islamic Revolution Guard Corps (IRGC) Navy struck two “violating ships,” though US Central Command disputed both the closure and the vessel attacks.
Iranian state media further reported that Iranian forces hit 18 US military positions and struck the headquarters of the US Fifth Fleet in Bahrain. Bahraini authorities confirmed that warning sirens sounded across parts of the country, urging residents to take shelter.
Tehran’s strategic leverage
The confrontation marks one of the most serious breakdowns since a fragile US-Iran ceasefire in April. Iranian officials view the renewed American strikes as proof that Washington continues to rely on military coercion to extract political concessions, disregarding Iran’s sovereignty, security concerns, and right to self-defense.
Analysts note that instability in global energy markets stems not from Iran’s actions alone, but from sustained US pressure campaigns. The Strait of Hormuz remains Tehran’s key strategic asset while Washington enjoys conventional military superiority, Iran’s ability to disrupt maritime energy flows acts as a powerful deterrent against foreign aggression.
Gold dips on rate fears
Despite the heightened geopolitical tensions, gold failed to rally. Spot gold traded near $4,077 per ounce after briefly touching its lowest level since November, while US gold futures moved lower.
“Bearish momentum has taken hold of gold, and traders are simply derisking at this point,” Matt Simpson, senior analyst at StoneX, told Reuters. “But with prices hurtling towards $4,000, it’s an obvious level of support that could prompt bears to book a quick profit or tempt battered bulls from the sideline.”
Simpson added that the US dollar index showed little reaction to Wednesday’s CPI report, and that gold could see a technical bounce unless Producer Price Index data delivers “nasty surprises.”
Inflation concerns linger
Investors are now awaiting US Producer Price Index figures for clues on Federal Reserve policy. Many traders expect persistent inflation fueled in part by rising energy costs tied to the conflict—to push the Fed toward additional interest rate hikes later this year.
Meanwhile, the US Energy Information Administration reported another decline in domestic crude inventories, adding further upward pressure on oil prices as markets brace for a prolonged confrontation with no diplomatic breakthrough in sight.
Source: Agencies (translated and edited by Al-Manar)