Finance
Oil Rises on Concerns Over Escalating Military Tensions in the Middle East
Published by Global Banking & Finance Review®
Posted on April 24, 2026
3 min readLast updated: April 24, 2026
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Oil prices rose on April 24 as renewed military escalations in the Middle East—especially Iran’s aggressive actions in the Strait of Hormuz and U.S. threats of retaliation—heightened fears of supply disruptions.
Oil Prices Surge as Middle East Military Tensions Disrupt Global Markets
Rising Oil Prices Amid Escalating Middle East Conflict
By Sam Li and Helen Clark
Recent Events Fueling Market Volatility
BEIJING, April 24 (Reuters) - Oil prices rose on Friday morning over fears of renewed military escalation in the Middle East after Iran released footage of commandos boarding a cargo ship in the Strait of Hormuz and on reports Tehran's air defences had engaged "hostile targets".
Market Response and Price Movements
Brent crude futures rose $1.23, or 1.17%, to $106.3 a barrel by 0107 GMT, while West Texas Intermediate futures were up $1.07, or 1.12%, at $96.92.
Both benchmark contracts settled up more than 3% on Thursday and jumped $5 a barrel after reports that air defences were engaging targets over Tehran and of a power struggle between Iran's hardliners and moderates.
Political Statements and Military Posturing
U.S. President Donald Trump said that Iran may have loaded up its weaponry "a little bit" during the two-week ceasefire, but added that the U.S. military could eliminate it in just a single day.
Ceasefire Uncertainty and Future Risks
The ceasefire phase is increasingly looking like a preparatory phase for war, Haitong Futures said in a report. If U.S.-Iran talks fail to make key progress by the end of April and fighting resumes, oil prices could climb to new highs for the year, it added.
Geopolitical Dynamics and Global Oil Supply
Strait of Hormuz: A Critical Chokepoint
Iran on Thursday posted video of commandos in a speedboat storming a huge cargo ship after the collapse of peace talks, underlining its grip over the Strait of Hormuz through which 20% of global oil and gas usually flows.
International Reactions and Diplomatic Efforts
As investors and governments around the world look for an enduring peace, Trump said he would not set a "timetable" for ending the conflict with Iran and that he wanted to make "a great deal."
"Don't rush me," he said when asked how long he was willing to wait for a long-term peace deal with Iran.
Potential Impact on Oil Inventories
Prolonged disruptions in the Strait of Hormuz could push global crude and refined-product inventories below five-year seasonal lows by late May or early June, adding a supply-risk premium back into oil prices, said Mingyu Gao, chief researcher for energy and chemicals at China Futures.
Regional Ceasefires and Ongoing Tensions
Israel-Lebanon Ceasefire Extension
Trump also announced in a social media post on Thursday that Israel and Lebanon had agreed to extend their ceasefire by three weeks after a high-level meeting between representatives of both countries in the White House Oval Office.
Continued Threats and Warnings
Before that announcement, Israel warned that it was ready to restart attacks on Iran.
(Reporting by Sam Li and Helen ClarkEditing by Shri Navaratnam)
Key Takeaways
- •Brent crude climbed to around $106.3 a barrel and WTI to about $96.92 amid increased military activity in the Strait of Hormuz and Iran’s aggressive moves, including mining operations and attacks on vessels, raising global supply concerns.
- •The U.S. has responded with a tightening naval blockade, seizure of Iranian-linked vessels, and directives to its military to “shoot and kill” Iranian boats laying mines, escalating fears of a broader conflict.
- •Analysts warn that if diplomatic talks between the U.S. and Iran falter by the end of April, oil prices could surge further—possibly to new highs for the year—especially as inventories risk falling below five-year seasonal lows.
Frequently Asked Questions about Oil rises on concerns over escalating military tensions in the Middle East
1Why did oil prices rise on Friday morning?
Oil prices rose due to fears of military escalation in the Middle East after Iran released footage of commandos boarding a cargo ship in the Strait of Hormuz and reports of air defenses engaging hostile targets.
2How much did Brent and West Texas Intermediate crude prices increase?
Brent crude futures rose $1.23 or 1.17% to $106.3 a barrel, while West Texas Intermediate futures were up $1.07 or 1.12% at $96.92.
3What significance does the Strait of Hormuz hold for global oil markets?
Around 20% of global oil and gas flows through the Strait of Hormuz, making it a critical chokepoint for global energy supplies.
4What could cause oil prices to reach new highs this year?
If U.S.-Iran talks fail and fighting resumes, oil prices could climb to new highs for the year due to market fears over supply disruptions.
5How could prolonged disruption in the Strait of Hormuz affect oil inventories?
Prolonged disruption could push global crude and refined-product inventories below five-year seasonal lows, adding a supply-risk premium to prices.
