Global Oil Markets Rattle as US-Iran War Reaches Dangerous New Phase

The ongoing military confrontation between the United States and Iran lurched into a more dangerous phase on Saturday, as both nations traded blows across the Gulf region and global oil markets braced for further disruption. Iran launched ballistic missiles at the UAE, striking near Fujairah’s critical energy facilities, while the US pressed forward with bombing runs over Iran’s mainland. The Strait of Hormuz remained effectively closed, with Iran refusing to allow the passage of vessels through the waterway it controls.
President Trump, in a series of social media posts and public statements, called on allied nations to send warships to help force the strait open. He specifically named China, France, Japan, South Korea, and the UK, framing the closure as an assault on global commerce. Trump also warned Iran that further interference with maritime passage could lead to attacks on Iran’s remaining oil infrastructure — a threat that sent shivers through commodity markets.
Energy analysts were blunt about the stakes. With prices already at around $120 per barrel since fighting began, some experts warned that further strikes on Kharg Island could push oil to $150 per barrel. The island, Iran’s primary crude export terminal located just 15 miles offshore, is considered so vital to global energy supply that its destruction could trigger cascading economic damage across the world. The US had so far refrained from directly destroying the oil infrastructure, though Trump hinted that restraint might not last.
Iran showed no signs of backing down. Its military spokesman threatened attacks on any regional energy or economic facility with American ties, while its foreign minister publicly demanded that Gulf nations remove US forces from their territory. The UAE, already reeling from the missile assault, said it retained the right to defend itself but was seeking a diplomatic resolution. Some oil-loading operations in Fujairah were suspended, adding to the economic pressure spreading across the region.
The human toll continued to rise. More than 1,400 people had been killed in Iran according to reports, with residents describing relentless bombing day and night. Thirteen people had died in Israel and around 20 across the wider Gulf. The US embassy in Baghdad was struck by missiles, triggering an emergency evacuation advisory. Analysts cautioned that Trump would need to find an exit from the conflict soon to prevent irreversible damage to the global economy.