Brent crude climbs to $80 as Iran tensions heighten fears over global oil supply

Brent crude rose to $80 a barrel on Tuesday as escalating tensions in the Middle East unsettled global commodity markets, intensifying concerns over oil supply disruptions and pushing up energy costs.

The international benchmark, Brent crude, gained 2.1 per cent to trade at about $80 per barrel, up from the previous close of $78.15. US benchmark West Texas Intermediate (WTI) also climbed 2.1 per cent to $72.85 per barrel, compared with $71.33 in the prior session.

The latest rally followed fresh threats to shipping through the Strait of Hormuz, a critical artery for global oil supplies. Iran’s Islamic Revolutionary Guard Corps (IRGC) said the strategic waterway had been closed to transit and warned that vessels attempting to pass through could be attacked.

Brig. Gen. Ebrahim Jabbari, a senior adviser to the IRGC commander-in-chief, said in remarks broadcast on Iranian state television that Iran would block passage through the Strait in response to US-Israeli attacks.

“The Strait of Hormuz has been closed. We will attack and set ablaze any ship attempting to cross,” Jabbari said. He also warned that oil pipelines could be targeted and said Iran would not allow “a single drop of oil” to leave the region.

Market analysts noted that while a prolonged closure of the Strait of Hormuz remains unlikely, any sustained disruption could drive oil prices into triple digits, with significant implications for global inflation and energy markets.

The surge in crude prices comes after Israel and the United States launched coordinated airstrikes on Iran on 28 February, deepening an already fraught stand-off despite ongoing diplomatic contacts between Tehran and Washington. Brent had traded around $73 per barrel at the close of 27 February, just before the strikes.

Meanwhile, US Secretary of State Marco Rubio defended the joint military action, citing what he described as an immediate security risk.

“There absolutely was an imminent threat,” Rubio told reporters on Capitol Hill before briefing the Gang of Eight – the four congressional leaders and the heads of the House and Senate Intelligence Committees.

“We knew that if Iran was attacked, and we believed it would be attacked, that they would immediately come after us, and we were not going to sit there and absorb a blow before we responded,” he said.

Rubio added that Washington would take steps to help mitigate higher energy costs stemming from the recent spike in oil prices.

Energy analysts say oil markets are likely to remain highly sensitive to geopolitical developments in the Middle East, with volatility expected to persist as traders weigh the risk of further escalation and potential supply shocks.