Oil rises on intensifying US-Iran hostilities, threat of Red Sea closure
Oil prices have risen due to escalating military tensions between the US and Iran, specifically involving threats to the Strait of Hormuz and the Red Sea. Market analysts warn that these geopolitical risks are creating a significant supply disruption premium on global energy benchmarks.
Why it matters
Instability in key oil transit routes directly impacts global energy costs, inflation, and international economic stability.
A worker checks equipment at the Rumaila oil field, as the country cuts nearly 1.5 million barrels per day of output amid halted exports following the closure of the Strait of Hormuz, in Basra, Iraq, March 4, 2026. — Reuters/File Listen to article 1x 1.2x 1.5x comments Join our Whatsapp Channel Add Dawn as a trusted source Oil prices inched up on Friday after the US and Iran stepped up attacks across the Gulf, with their broken truce limiting oil flows out of the Strait of Hormuz and with Tehran asking the Houthis to stand ready to shut the Red Sea export route.
Brent crude futures rose 7 cents, or about 0.08 per cent, to $84.30 a barrel at 0632 GMT, while US West Texas Intermediate futures gained 16 cents, or 0.2pc, to $79.11 a barrel.
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