US-Iran Strait of Hormuz Exchange Pushes Oil Above $100
BBC Business reported Friday that oil prices climbed sharply in Asian trading after the United States and Iran exchanged fire near the Strait of Hormuz, pushing global benchmark Brent crude above $100 a barrel for the first time in months.
Missiles, Drones and Destroyers in the Strait of Hormuz
Brent crude rose as much as 2% before settling at roughly $101.60 per barrel during mid-morning Asian trade. US-traded oil gained 1.1%, reaching approximately $95.87. The US military described the incident as a response to what it called unprovoked Iranian aggression, involving missiles, drones and small boats. Three American destroyers were reportedly engaged in the encounter. President Donald Trump said several Iranian vessels were destroyed and that missiles aimed at US ships were intercepted without causing damage. US Central Command denied any of its ships sustained hits and stated it was not seeking further escalation.
Iran’s Version Directly Contradicts Washington
Iranian state broadcasters offered a starkly different account. Tehran accused US forces of initiating the exchange by striking Iranian vessels, including an oil tanker, as they moved toward the strait. Iran also alleged aerial attacks along the coastline prompted its forces to respond, claiming significant damage was inflicted on American ships. The episode complicated already fragile diplomacy, though Iranian state media later indicated conditions near the strait had returned to normal.
A War That Began in February
The broader conflict traces back to late February 2026, when the US and Israel launched strikes against Iran. Since then, energy markets have remained on edge. Iran’s repeated threats to disrupt shipping through the Strait of Hormuz have kept traders nervous. More than a fifth of the world’s oil and gas supply transits that waterway each year, making any military activity there a direct threat to global energy flows. Associate professor Jiajia Yang of James Cook University told BBC Business that fear of disruption along the strait was directly driving Friday’s price jump.
Ceasefire Holds, Barely, as Talks Continue
Trump told reporters that the ceasefire he extended indefinitely on 21 April remained technically in place despite the exchange. He described the Iranian strikes dismissively but acknowledged ongoing nuclear negotiations, warning Tehran that failure to reach a deal would bring serious consequences. Economics researcher Huifeng Chang of the National University of Singapore noted that markets view the existing truce as highly fragile. Traders are reacting to every headline even as both governments attempt to downplay the severity of each confrontation.
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