Oil surges past $95 as Trump warns of more Iran strikes
Brent crude rose to $95.14 and Dow futures dropped 50 points as President Trump threatened further strikes on Iran without a deal. The U.S. military targeted Iranian assets, while Iran claimed retaliation against U.S. bases in Bahrain and Kuwait and threatened to close the Strait of Hormuz.
*this image is generated using AI for illustrative purposes only.
Global oil prices surged above $95 per barrel and U.S. stock futures slipped late Wednesday as geopolitical tensions escalated in the Middle East. President Donald Trump warned that additional military action would follow if Iran fails to reach an agreement with Washington. The escalation follows U.S. strikes on Iranian targets and threats by Tehran to close the Strait of Hormuz, a critical chokepoint for global oil shipping.
Market Reaction to Escalation
Financial markets reacted swiftly to the heightened tensions. Dow futures fell 50 points, or 0.10%, to 49,940.00. S&P 500 futures declined 4.00 points, or 0.05%, to 7,274.50, while Nasdaq 100 futures lost 47.50 points, or 0.17%, to 28,506.50 as of around 8:50 p.m. EDT.
Commodity markets saw significant movement, particularly in energy. WTI crude oil climbed 2.60% to $92.37 per barrel, while Brent crude advanced 2.19% to $95.14 per barrel. Natural gas futures were largely flat, slipping 0.03% to $3.184 per MMBtu. The U.S. dollar index stood at 99.956, down 0.13%.
| Index/Commodity | Value | Change | % Change |
|---|---|---|---|
| Dow Futures | 49,940.00 | -50.00 | -0.10% |
| S&P 500 Futures | 7,274.50 | -4.00 | -0.05% |
| Nasdaq 100 Futures | 28,506.50 | -47.50 | -0.17% |
| WTI Crude Oil | $92.37 | +2.60% | - |
| Brent Crude | $95.14 | +2.19% | - |
Asian markets traded higher, with South Korea's KOSPI rising 3% to 7,499.20 and Japan's Nikkei 225 advancing 1.14% to 63,446.63.
Military Strikes and Strategic Threats
The U.S. Central Command announced that American forces targeted Iranian surveillance assets, communications systems, and air defense sites. The operation, involving Marine Corps, Air Force, and Navy assets, began at approximately 5:15 p.m. ET. These strikes were in response to what officials described as unwarranted aggression by Iran, including the reported downing of an American helicopter.
Iran's top military command announced the closure of the Strait of Hormuz to oil tankers and commercial vessels, warning that ships attempting to pass could come under fire. However, U.S. Central Command stated on social media that claims regarding the closure or attacks on U.S. warships were false, noting that commercial ships continued to transit the waterway.
Retaliation and Political Warnings
Iranian state-affiliated media reported explosions in multiple cities, including near Tehran and the southern coast. The Islamic Revolutionary Guard Corps (IRGC) claimed it launched retaliatory attacks against 18 targets, including U.S. military facilities in Bahrain and Kuwait. Bahrain's Interior Ministry reported air raid sirens, though no similar alerts were reported in Kuwait. The IRGC also stated it targeted the U.S. Fifth Fleet headquarters in Bahrain and Kuwait's Ali Al Salem Air Base.
President Trump indicated that U.S. bombing operations could cease if an understanding is reached with Iran. However, he warned that military action would continue Thursday night if Tehran does not sign a memorandum of understanding with Washington.
How will a sustained closure of the Strait of Hormuz impact global supply chains and consumer inflation?
What is the likelihood of OPEC+ intervening to stabilize oil prices if tensions persist?
Could the escalation in the Middle East trigger a broader shift into defensive assets like gold and bonds?
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