Gulf Tensions Rattle Global Oil Markets After U.S. – Israeli Strikes On Iran

Image Source – NDTV

Global energy markets are on alert after U.S.- Israeli airstrikes on Iran triggered retaliatory missile launches across the Gulf, heightening fears of supply disruptions in a region responsible for about 20% of global oil output. The strikes, conducted on Saturday, reportedly targeted senior Iranian figures.

U.S. President Donald Trump said the action was aimed at eliminating a perceived security threat and creating conditions for political change within Iran. In response, missile activity was reported in several Gulf states. Explosions were heard in the United Arab Emirates and Kuwait, while Qatar confirmed it intercepted missiles directed at its territory. Blasts were also reported in Bahrain and near Iran’s Kharg Island – the strategic terminal that typically handles nearly 90% of the country’s crude exports. Despite the escalation, there are no confirmed reports of damage to oil or gas infrastructure.

Much of the crude stored at Kharg Island had already been transferred onto tankers in recent days. Importantly, traffic through the Strait of Hormuz- the narrow waterway carrying nearly 20 million barrels of oil per day- remains uninterrupted for now.

However, uncertainty surrounding the conflict is expected to push oil prices higher when markets reopen. Brent crude had already climbed to around $70 per barrel in recent weeks, its highest level since August 2025, as investors anticipated rising tensions in the Middle East.