Oil tops $85 as US strikes on Iran block Strait of Hormuz

International benchmark Brent crude rose above $85 a barrel on Tuesday to reach its highest level in nearly a month, climbing 2.4% as of 0635GMT to extend weekly gains beyond 13%. The surge came as US military operations against Iranian targets and a renewed blockade of the strategic Strait of Hormuz heightened concerns over potential disruptions to global energy shipments.

US strikes target Iranian military sites

The US Central Command said its latest five-hour operation struck military installations along Iran's southern coastline, targeting coastal defense systems, missile and drone facilities, and maritime capabilities in Bushehr, Chah Bahar, Jask, Konarak, Abu Musa, and Bandar Abbas. CENTCOM stated the strikes were intended to weaken Iran's ability to attack commercial shipping, according to a statement from the command.

Trump demands Gulf states pay for protection

US President Donald Trump said American forces were targeting Iran's military capabilities linked to the Strait of Hormuz while reinstating a comprehensive blockade on Iran and vessels conducting business with Tehran. He added that Washington expected reimbursement from Gulf countries benefiting from US protection of the waterway, specifically naming Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, and Bahrain as nations that should compensate the United States for its security role.

Commercial traffic through the Strait of Hormuz — a vital chokepoint for global oil and liquefied natural gas shipments — has slowed to a near halt amid the renewed strikes, security warnings, and growing uncertainty over the blockade. The escalation has intensified concerns over potential disruptions to energy shipments through one of the world's most important transit routes.