Oil Prices Rise Above $116 After US Strikes on Iran’s Kharg Island

TLDR

• The US struck 50 military targets on Iran’s Kharg Island, a key crude oil export hub
• Oil prices jumped, with WTI crude rising over 3% to above $116 per barrel
• Trump set an 8 p.m. ET deadline for Iran to reach a deal or face wider strikes
• Iran has denied ceasefire proposals and threatened attacks on Gulf infrastructure
• Overnight strikes reportedly targeted Saudi Arabia’s Jubail petrochemical plant

US forces struck 50 military targets on Kharg Island in Iran early Tuesday. The island is Iran’s main crude oil export terminal and a major source of revenue for the regime.

The strikes hit military sites similar to those targeted in a previous round of attacks last month. Energy infrastructure on the island was not targeted this time.

President Trump set a deadline of 8 p.m. ET Tuesday for Iran to reach a deal. He warned that failure to do so would result in a widespread bombing campaign across Iran.

Trump also left open the possibility of a deal. He said new Iranian leaders with “different, smarter, and less radicalized minds” could reach an agreement before the deadline.

At a press conference Monday, Trump said that if no deal is reached, Iran would have “no bridges, no power plants — stone ages.”

Oil Prices Jump on Escalating Tensions

Oil markets reacted quickly to the news. Brent crude rose to above $110 per barrel, while West Texas Intermediate jumped more than 3% to trade above $116 per barrel.

The price moves came as traders reacted to the strike on Kharg Island and Trump’s comments about the 8 p.m. deadline.

Kharg Island handles a large share of Iran’s crude exports, making it a closely watched location for oil markets during the conflict.

Iran Rejects Ceasefire, Threatens Gulf Attacks

Iran has rejected proposals for a temporary ceasefire. The regime has said it will only accept a full end to the conflict, along with guarantees of reparations.

Iran also reportedly said it will no longer hold back from widespread attacks on Gulf infrastructure. Overnight, Iranian strikes reportedly targeted Saudi Arabia’s Jubail petrochemical plant.

US and Israeli forces reportedly struck bridges, roads, an airport, and other infrastructure inside Iran throughout Monday night and into Tuesday, according to Iranian media.

Attacking civilian infrastructure, such as power plants and bridges, is considered a war crime under the Geneva Conventions.

As of Tuesday afternoon, the 8 p.m. ET deadline set by Trump had not yet passed, and no deal had been publicly announced.

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