WTI Crude Settles at $90.22 as U.S. Strikes Iran Over Hormuz Mining and Tanker Attacks

Oil prices surged sharply on Tuesday after U.S. forces launched a series of strikes on Iranian military targets in and around the Strait of Hormuz, with President Trump saying the attacks were retaliation for Iran attempting to mine the strait and for targeting a Jordanian base. Two supertankers were struck while exiting the waterway, intensifying fears about disruptions to one of the world's most critical oil chokepoints, which carries roughly one-fifth of global oil flows.

WTI crude settled at $90.22 per barrel, up $4.46 or 5.2%, topping $90 for the first time since late July. Brent crude rose 4.6% to settle at $94.65 per barrel, having earlier crossed $94 intraday. Diesel margins hit a record above $106 per barrel as supply disruption fears spread to refined products, with U.S. retail diesel prices approaching $5.63 per gallon.

The escalation rippled through equity markets, with the Dow Jones Industrial Average falling around 400 points as the session wore on. Oil producers outside the Gulf, including Chevron and Exxon, saw their shares jump as analysts noted that non-Gulf producers stand to gain the strongest pricing advantage while Hormuz risk remains elevated. The key market concern is whether the shipping lanes remain open, as any sustained disruption would lift freight costs, insurance rates, and crude prices further.