DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.

Oil prices skyrocketed Thursday as reports surfaced of suspected attacks on Saudi oil tankers, reigniting fears of wider conflict in the Middle East and instability in global energy markets.

The surge came after former President Trump vowed a forceful military response to Iranian aggression, threatening to target Iranian infrastructure following renewed strikes on shipping.

Brent crude for July delivery jumped 4.6 percent to $98.44 per barrel, the highest price since late May. U.S. West Texas Intermediate climbed 3.8 percent to $90.14 per barrel, its highest mark since early June.

Market analysts say if prices hold, both benchmarks are poised for their steepest monthly gains in a decade—up roughly 35 percent for Brent and 30 percent for WTI.

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The latest flare-up began when the UK Maritime Trade Operations reported a tanker struck by a projectile off Saudi Arabia’s southwestern coast. The incident triggered a fire onboard, though no casualties were reported.

Yemen’s Houthi rebels, backed by Iran, later claimed responsibility, stating two Saudi tankers were targeted with drones and missiles for defying a self-declared maritime blockade.

International observers have yet to verify the claims, but if confirmed, the strikes would be the first of their kind since the Iran-aligned group announced a blockade on Saudi shipping lanes. The news sent crude buyers scrambling, fearing fresh supply disruptions in one of the world’s most critical energy corridors.

Only hours after the reports, Trump delivered a fiery warning that the United States would hit back hard if Iran continued to threaten shipping in the Strait of Hormuz. He pledged to destroy a “bridge or power plant” inside Iran every time Tehran attacked another vessel, declaring that the era of passive responses was over.

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Iran responded with similar defiance, threatening to strike American-linked infrastructure across the Middle East should Washington act on its threats. A senior Iranian military source told state media that if the U.S. targeted vital Iranian assets, Tehran would retaliate against bridges, ports, and energy facilities tied to American interests throughout the region.

Markets immediately digested the possibility of direct U.S.-Iran military exchanges, a scenario that could shake global oil supplies. Analysts noted that the Strait of Hormuz—through which roughly one-fifth of the world’s crude passes daily—has become an increasingly volatile flashpoint thanks to Iran’s assertive tactics and a fractured ceasefire arrangement.

Joseph Westphal, former U.S. ambassador to Saudi Arabia, told CNBC that the situation “is incredibly difficult to understand,” adding that Washington lacks a coherent strategy. According to Westphal, even as the government requests more funding for war operations, many in Congress remain wary, unconvinced there’s a clear plan for dealing with Tehran or protecting global shipping routes.

Westphal raised concerns about both the economic and political fallout at home. He said American resources are stretched thin, warning that sustaining open conflict in the region could strain an already fragile U.S. economy.

“As gas prices continue to escalate and other commodities climb, public sentiment will inevitably turn against this war,” he said, pointing to growing frustration over unclear foreign objectives.

Secretary of State Marco Rubio reaffirmed Washington’s official stance on diplomacy but accused Iran of “not being serious” about peace talks. His comments suggested that while U.S. officials still publicly back diplomatic engagement, behind the scenes they are bracing for a prolonged period of hostilities.

HSBC analysts echoed those concerns, writing that the oil price rally reflects “renewed concerns over the Strait of Hormuz” following the breakdown of the U.S.-Iran ceasefire.

The bank warned that the trajectory of crude prices now depends heavily on whether either side can restore predictable maritime operations. “The core issue remains unresolved,” analyst Kim Fustier noted, adding that Iran’s dissatisfaction over U.S.-managed shipping lanes through Oman has long threatened stability.

Energy traders, already jittery over tight supplies and high demand, view these developments as a perfect storm for volatility. Many are watching closely to see if the U.S. naval presence in the region increases in coming days, signaling that threats of escalation could soon become reality.

If the confrontation deepens, consumers worldwide can expect to feel the effect almost immediately at the pump. Investors, meanwhile, are debating whether the surge in crude is a temporary bubble or the start of a longer-term trend fueled by geopolitical risk and shrinking production capacity.

As markets brace for more turbulence, the message from oil traders is clear: global energy security remains as fragile as ever, and political miscalculation in the Gulf could send prices soaring well beyond current triple-digit levels.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.