U.S. warns of destroying Iranian oil terminal as Gulf strikes escalate, crude jumps
The U.S. and Iran exchanged fresh military strikes in the Gulf, with President Trump threatening to destroy Iran's Kharg Island oil terminal. Brent crude prices rose in response, while global stock markets showed mixed performance.
The latest escalation follows a pattern of tit-for-tat strikes, with the U.S. targeting Iranian rocket launchers on Larak Island and Iran responding against American bases in Jordan. A tanker fire in the Strait of Hormuz, attributed to sea mines, added to shipping risks. President Trump’s social media post threatening Kharg Island—the hub for 90% of Iran’s oil exports—directly pressured crude prices, which climbed above $90 per barrel. Separately, a claimed U.S.-Venezuela oil deal, giving Washington a 55% stake in a joint venture, was met with skepticism from experts who noted any supply impact would take years.
This confrontation could ripple far beyond energy markets. Higher crude prices may raise fuel costs for consumers and businesses globally, potentially feeding inflation and slowing economic growth. Shipping disruptions in the Strait of Hormuz—a critical chokepoint for Asian oil and gas—could threaten supply chains across the region. While stock markets showed mixed reactions, sustained instability may erode investor confidence and complicate central bank decisions on interest rates. The outcome hinges on whether threats remain rhetorical or escalate into broader military action.