Donald Trump called for the deployment of warships by the United States and several other countries to keep the Strait of Hormuz open so that commercial vessels can pass safely. At the same time, the US and Israel struck military facilities on Kharg Island, but Trump said oil infrastructure was deliberately spared and warned that it could become a target if Iran interferes with ship traffic through the strait. Fighting in the Persian Gulf continues, with Iran carrying out retaliatory attacks on Arab states in the region and US-linked bases. As tensions escalated, Brent crude prices rose above 100 dollars per barrel.

As oil price volatility eased, selling pressure in global equity markets slightly moderated, though concerns over an escalation of the Iran war continue to weigh on sentiment. The MSCI All Country World Index fell about 0.3%, while Brent crude traded around $100 per barrel after a sharp rally the previous day. Investors are also assessing measures taken by the administration of Donald Trump to curb energy prices, including the release of strategic reserves and a temporary waiver allowing purchases of Russian oil. However, Iran’s threat to keep the Strait of Hormuz closed has heightened fears of global supply disruptions, prompting markets to remain cautious about inflation risks and the future policy path of the Federal Reserve.

The US strike on military targets on Kharg Island has raised concerns in oil markets, as the island handles roughly 90% of Iran’s crude oil exports. Trump said oil infrastructure was intentionally spared but warned that it could become a target if Iran disrupts shipping through the Strait of Hormuz. Analysts say any serious damage to the Kharg export terminal could disrupt Iran’s oil exports and push global oil prices even higher.

According to an OPEC survey, the group’s oil output rose by 640,000 barrels per day last month to about 29.52 million barrels per day, with much of the increase coming from Saudi Arabia. The production boost occurred before the Iran-US/Israel conflict as regional tensions were rising. However, after disruptions to tanker traffic through the Strait of Hormuz, part of the Gulf countries’ production has been halted, keeping pressure on global oil markets.