Oil Prices Surge After US, Israeli Strikes on Iran

(MENAFN) A sharp rise in global oil prices following recent military action by the United States and Israel against Iran is casting uncertainty over the interest rate trajectory of the Federal Reserve, as higher energy costs threaten to fuel inflation.

The widening confrontation has unsettled financial markets, driving crude prices upward amid mounting concerns about the security of key Middle Eastern shipping lanes.

Brig. Gen. Ebrahim Jabbari, identified as a senior adviser to the commander-in-chief of Iran’s Revolutionary Guard Corps, declared on March 2 that the Strait of Hormuz would be closed to maritime traffic in response to the Feb. 28 strikes. He cautioned that any ship or oil tanker attempting to pass through the strategic channel would face targeting.

Meanwhile, US Secretary of State Marco Rubio stated that Iran represents an immediate danger to both the US and Israel, signaling that Washington has not yet deployed its most forceful military options. Authorities in the US are also said to be weighing steps aimed at cushioning the impact of surging global oil prices on domestic energy costs.

The Strait of Hormuz serves as a crucial maritime chokepoint at the entrance to the Persian Gulf, providing a gateway for oil and liquefied natural gas shipments from the Middle East to international markets through the Arabian Sea and the Indian Ocean.

Roughly 20 million barrels of oil and petroleum products transit the route each day, representing nearly one-third of all seaborne crude supplies worldwide.

Energy-exporting nations such as Saudi Arabia, the United Arab Emirates, Kuwait, Iraq, and Qatar depend heavily on the passage. At the same time, European buyers and leading Asian economies including China, India, Japan, and South Korea rely on the corridor for vital energy imports.

In response to the joint US-Israeli operation, Tehran reportedly launched retaliatory strikes targeting oil and gas infrastructure in the region. Among the sites hit were facilities operated by Saudi Aramco in Ras Tanura, eastern Saudi Arabia, where drone attacks were reported.

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