Markets brace for retaliation risks and potential disruptions to key shipping lanes.
Oil prices surged in early Asian trading on Thursday after the United States carried out military strikes on Iran’s strategic Chabahar port, escalating tensions following the collapse of the April ceasefire and reigniting fears of disruptions to global energy supplies.
At 7:49 a.m. Tokyo time on Thursday, Brent crude, the international benchmark, jumped 5.20% to $78.02 a barrel, while West Texas Intermediate (WTI) rose 1.41% to $74.56.
Murban crude, Abu Dhabi’s flagship export grade and a key feedstock for Asian refiners, jumped 6.67% to $73.57 a barrel, outperforming gains in other major benchmarks. US natural gas prices also edged higher, rising 0.25% to $3.220.
The rally followed overnight US strikes on military-linked targets in Chabahar, Iran’s only oceanic port on the Gulf of Oman.
The attack marked the first known US military operation in the area since the April ceasefire, expanding the conflict beyond the Strait of Hormuz — a critical chokepoint that handles roughly one-fifth of global oil supplies.
Markets reacted to the possibility of Iranian retaliation against regional energy infrastructure or commercial shipping routes, despite Chabahar’s location outside the Strait of Hormuz.
Analysts said the main concern is that an expansion of hostilities could disrupt key shipping lanes linking the Persian Gulf with the Indian Ocean, potentially affecting global energy flows.
The stronger gains in Murban crude reflected heightened concerns among Asian buyers, as the benchmark is widely traded by refiners in Japan, South Korea, China and other major Asian economies.
Sharp rise for Murban
Murban’s steep increase indicated that traders were pricing in elevated regional supply risks and the possibility of further disruptions to crude exports.
Despite the rally, oil prices remained well below the triple-digit levels seen during previous phases of the conflict, suggesting that traders have not yet priced in a prolonged disruption to crude exports.
Analysts said markets are closely monitoring whether Iran responds with direct action against US forces or seeks to disrupt maritime traffic in the region.
Energy markets have remained highly sensitive to Middle East developments since tensions escalated earlier this year.
The collapse of the April ceasefire has renewed concerns that further military exchanges could tighten global crude supplies, raise freight and insurance costs, and add to inflationary pressures worldwide.
Investors are now awaiting further statements from Washington and Tehran, along with any indications of disruptions to tanker traffic or oil production that could determine whether Thursday’s surge develops into a broader energy price shock.
