Global oil prices surge above $94 a barrel and settle at a 6-week high after the U.S. strikes Iran in Hormuz, and Trump threatens more action if Tehran retaliates

Oil futures settled above $94 a barrel on Tuesday, pushing to a nearly six-week high after the U.S. military said it struck Iranian targets in the Strait of Hormuz. The strikes were a direct response to Tehran’s overnight attacks on commercial vessels transiting the waterway. President Trump subsequently warned of further action should Iran retaliate, keeping geopolitical risk firmly priced into the market.

The Strait of Hormuz is one of the world’s most critical energy chokepoints, and a confrontation there carries outsized significance for global supply. Even a limited exchange raises the prospect of shipping delays, higher insurance costs for tankers, and potential disruptions to crude flows from major Gulf producers. Tuesday’s price jump reflects the market’s immediate concern that a shadow conflict could escalate into a broader regional disruption.

Traders will now scrutinize Iran’s next move, any additional U.S. military deployments, and diplomatic efforts to de-escalate. The situation remains fluid, and volatility in crude prices is likely to persist as long as the threat of retaliation and counter-strikes hangs over the region. For now, the market is focused on the tangible risk to supply rather than any immediate change in production levels.