Global oil prices climbed sharply on Friday after the United States and Iran exchanged fire in the strategic Strait of Hormuz, heightening fears of renewed disruption to global energy supplies. The Strait, located south of Iran, handles more than a fifth of the world’s oil and gas shipments and has remained effectively blocked since the outbreak of the US-Israel conflict with Iran. The US military said it carried out self-defence strikes after what it described as “unprovoked” Iranian attacks on American vessels leaving the Gulf through the strait. Iran, however, accused Washington of breaching an existing ceasefire agreement, according to reports from Iranian state media.
Following the confrontation, the global Brent crude benchmark surged by almost three percent, briefly nearing $103 per barrel before easing to around $100. Oil prices had traded at roughly $70 a barrel before the conflict began, underscoring growing market anxiety over instability in the Gulf region.
US President Donald Trump insisted that the US-Iran ceasefire “is still in place” despite the latest hostilities. Iranian state media later reported that the situation “is back to normal now,” suggesting both sides were seeking to prevent further escalation.
Trump disclosed that three US destroyers were involved in the exchange, claiming several Iranian small boats were “completely destroyed” while missiles fired at US ships were “easily knocked down.” Speaking to ABC News, he downplayed the incident, describing the Iranian strikes as “just a love tap.”
The US president also confirmed that negotiations with Tehran were continuing, while reiterating Washington’s demand that Iran must never acquire nuclear weapons. “The talks are going very well, but they have to understand if it doesn't get signed, they're going to have a lot of pain,” Trump said, adding: “I believe they want the deal more than I do.”
Iran’s military earlier alleged that the US had targeted its vessels, including an oil tanker moving towards the Strait of Hormuz, and carried out “aerial attacks” along the coastline near the waterway. Tehran said its forces responded by attacking US warships and inflicting “significant damage,” though the US military denied any of its vessels were hit and stressed it was not seeking to escalate the conflict.