US-Israel Military Strikes on Iran Threaten Oil Supply, Markets Brace For Volatility
On Saturday, the United States and Israel struck targets in Iran, rattling energy traders and raising fears that any escalation could choke flows through the Strait of Hormuz, a key route for global crude. President Donald Trump framed the campaign as major combat operations aimed at crushing Iran's military capacity and ending what he called an imminent threat tied to Tehran's nuclear ambitions.As per the report by Reuters, the strikes targeted Iran's leadership and were followed by Iranian missiles launched toward Israel, putting nearby Gulf oil producers on alert. Some major oil companies and leading trading houses paused crude and fuel movements through the Hormuz corridor after the attacks.Trump tied the operation to what he described as a refusal by Tehran to accept a negotiated outcome in nuclear talks, saying he had not reached a "final decision" as recently as Friday. He also pointed to last June's Operation Midnight Hammer, saying it "obliterated" three nuclear sites and that Washington had warned Iran against rebuilding its program.Escalating Conflict Could Spike Oil PricesTrump said the U.S. military had begun "major combat operations" and argued Iran "can never have a nuclear weapon," casting the strikes as a preemptive move rather than a limited response. He also said the U.S. objective included dismantling Tehran's missile capabilities and its network of armed proxies.That political messaging lands directly on the oil market's pressure point: Iran sits across from the Arabian Peninsula at the Strait of Hormuz, where roughly 20% of world oil supply transits, according to the report. Meanwhile, on Friday the Brent settled near $73 a barrel and was already up about 20% for the year.As per the ...Full story available on Benzinga.com
