Global crude oil prices climbed on Wednesday after the US launched strikes against Iranian military targets near the Strait of Hormuz, reigniting concerns about potential disruptions to global energy supplies and raising fresh questions about the outlook for inflation, trade and economic growth. International benchmark Brent crude rose around 1% to $93.26 per barrel, while US West Texas Intermediate (WTI) crude gained 0.97% to trade near $90 per barrel. The move reflects growing investor concern that any instability around the Strait of Hormuz could have significant consequences for global oil flows. The waterway remains one of the most strategically important maritime routes in the world, carrying a substantial share of internationally traded crude oil and liquefied natural gas, making it critical for global energy flows.
The United States carried out 'self defence' strikes against Iranian targets on June 9, following President Donald Trump's warnings that America will respond to the attack on its Apache helicopters. US Central Command (CENTCOM) disclosed that forces struck Iranian air defense, ground control stations, and surveillance radar sites near the Strait of Hormuz with precision munitions from U.S. Air Force and Navy fighter jets, according to an official post on platform X. The authority also said that the US military forces will continue to remain vigilant and positioned to defend against any 'unjustified Iranian aggression' in West Asia. In response to the US strike, Iran's Islamic Revolutionary Guard Corps (IRGC) during the early hours on Wednesday targeted the US Fifth Fleet in Bahrain, with IRGC Navy forces launching a drone attack at 2:30 a.m. against the U.S. Fifth Fleet in Bahrain, according to a statement from the semi-official Tasnim News Agency. The local media report further alleged that the United States carried out strikes against Jask, Sirik and Qeshm, with military strikes allegedly damaging a communication tower and destroying two water reservoirs in the Bamani district.
Questions remain over how the AH-64 Apache came down near the Strait of Hormuz, with a Reuters report quoting a US official familiar with the investigation stating authorities are examining evidence that the helicopter collided with an Iranian drone while operating near the Strait of Hormuz. Officials have not determined whether any collision was deliberate, with public statements from US authorities saying only that the circumstances surrounding the crash remain under investigation. The two crew members survived the incident and were recovered about two hours later, with Trump saying both service members were 'safe and uninjured.' Capt. Tim Hawkins, a spokesperson for Central Command, said an uncrewed surface vessel located the aviators and moved them to another position at sea before a helicopter completed the recovery, marking the first publicly known rescue of its kind involving a US military drone vessel. The operation was conducted using a 24-foot craft known as a Corsair, assigned to Task Force 59, the Navy unit established in 2021 to expand autonomous systems across Middle East waters.
Iran has denied responsibility for the Apache helicopter incident, maintaining that the helicopter crash was accidental rather than deliberate. Regardless of the competing narratives, the episode has heightened tensions between Washington and Tehran at a time when markets had been hoping for a gradual easing of hostilities. The latest developments have complicated expectations that the conflict in West Asia could move towards a more stable phase. Adding to investor concerns were reports suggesting that Tehran could consider reopening hostilities if Israel continues military operations against Hezbollah in Lebanon. While diplomatic efforts remain ongoing, the renewed exchange of military actions has reminded markets how quickly geopolitical risks can return to the forefront.
Supply disruptions continue to weigh on global oil markets, as shipping through the Hormuz passage, which transits nearly 20% of the global oil and liquified natural gas flows, remains under dual blockade. The geopolitical backdrop is also coinciding with signs of tightening oil supplies, with reports indicating that US crude oil inventories declined last week for an eighth consecutive week. A sustained drawdown in inventories typically signals healthy demand or tightening supply conditions, both of which can contribute to upward pressure on crude prices. The rise in oil prices was accompanied by a broader deterioration in risk sentiment across global financial markets, with Asian equities trading largely lower. Japan's Nikkei and Hong Kong's Hang Seng each fell more than 1%, while South Korea's KOSPI suffered an even sharper decline of nearly 4%. Investors remain concerned that higher energy prices could complicate inflation trends and influence central bank decisions across major economies.
