Rising Tensions Between Iran and US: What It Means for Global Oil Markets and Investors
Tehran – Iran issued a stern warning on Saturday, threatening to reduce US-linked oil facilities to “a pile of ashes” as the ongoing Middle East conflict, now in its third week, has triggered a global oil price crisis.
The Iranian armed forces made the threat following remarks by US President Donald Trump, who indicated he might “wipe out” Iran’s largest oil export hub located on Kharg Island.
The conflict has unleashed waves of drone, missile, and aerial bomb attacks, displacing millions across the region and reportedly causing over 1,200 casualties in Iran since the US and Israel initiated hostilities on February 28.
Despite facing superior US and Israeli military capabilities, Iran has retaliated with missile and drone strikes targeting at least 10 countries. Tehran has also escalated tensions by threatening attacks on oil tankers passing through the Strait of Hormuz, a critical maritime route that normally handles one-fifth of the world’s oil shipments, effectively bringing traffic to a near standstill.
Global crude oil prices have surged by more than 40 percent since the outbreak of the war.
On Friday, President Trump claimed that US forces had “totally obliterated” all military targets on Kharg Island during what he described on social media as “one of the most powerful bombing raids in the history of the Middle East.” However, he refrained from destroying the island’s oil infrastructure for the time being.
Trump warned that should Iran or any other party interfere with the free passage of ships through the Strait of Hormuz, he would reconsider his decision immediately. He also announced that the US Navy would soon begin escorting tankers through the Strait to restore oil exports.
In response, Iran’s military stated that any oil and energy infrastructure owned by US-linked companies would be “immediately destroyed and turned into a pile of ashes” if attacked by the United States, according to Iranian media sources.
Casualty figures from the Iranian health ministry report over 1,200 deaths in Iran due to US and Israeli attacks, although these figures have not been independently verified. The UN refugee agency estimates that up to 3.2 million people have been displaced within Iran since the conflict began.
Blasts Shatter Tehran
Heavy explosions rocked Tehran late Friday following US vows to intensify air strikes. President Trump declared Iran “totally defeated” and dismissed reports of its search for a peace deal.
The Pentagon reported that more than 15,000 targets within Iran have been struck by US and Israeli forces during the past two weeks, with Israel’s military conducting approximately 7,600 of those raids, many targeting Iran’s missile program.
Iran appears determined to survive the conflict, despite the killing of its supreme leader, Ali Khamenei, at the onset of the US-Israeli campaign. His son, Mojtaba Khamenei, has been named the new supreme leader but remains absent from public view and is reportedly wounded.
Inside Iran, the Revolutionary Guards have issued warnings of a severe crackdown on any anti-government protests, recalling the deadly demonstrations in January that resulted in thousands of deaths. Authorities have also maintained an internet blackout since the war began.
On Saturday, a drone struck the US embassy in Baghdad, with eyewitnesses reporting smoke rising from the site. This attack followed the killing of two Iran-backed fighters in strikes on Iraq’s capital.
After two weeks of fighting, the United States is reportedly sending reinforcements that could broaden the scope of military operations beyond air strikes. The Wall Street Journal and New York Times revealed that the amphibious assault ship USS Tripoli, based in Japan, accompanied by some 2,500 Marines, has been dispatched to the region.
US military casualties since the war’s start total 13 personnel, including six who died in a refueling aircraft crash in Iraq; officials confirmed this was not due to hostile action.
Iran continues to target Gulf countries. On Saturday, Qatar intercepted two missiles after explosions were heard in its capital, Doha, prompting evacuations in key areas. Saudi Arabia’s defense ministry also reported intercepting dozens of drones on Friday.
Meanwhile, Turkey reported that NATO forces shot down a ballistic missile launched from Iran—marking the third such interception in the conflict.
Lebanon has become entangled in the war after a Tehran-backed militant group launched an attack on Israel in retaliation for the killing of Iran’s supreme leader. An Israeli strike in southern Lebanon killed twelve healthcare workers at a clinic, according to Lebanese health authorities. So far, Israeli attacks in Lebanon, aimed at eliminating Hezbollah, have resulted in at least 773 deaths, Lebanese officials say.
تحليل خاص من عمانت | تصفح سوق عُمان
The escalating conflict between Iran, the US, and Israel is heightening geopolitical risks and driving crude oil prices sharply higher, which directly impacts Oman’s oil-dependent economy. Businesses should brace for continued supply disruptions and price volatility, while smart investors must consider opportunities in energy security solutions and alternative supply chains. Entrepreneurs and policymakers should prioritize resilience strategies to mitigate exposure to regional instability and capitalize on shifts in global energy dynamics.
