Global energy markets reacted sharply Tuesday after the United States conducted military strikes overnight on Iran’s Qeshm Island, near the Strait of Hormuz. The Pentagon said the operation targeted facilities linked to recent maritime disruptions, escalating tensions around a critical route for global oil shipments.
Brent crude futures rose about 2% in early trading. Prices climbed above $106 a barrel as markets weighed the risk of a wider regional conflict and disruptions to crude flows. Geopolitical risk overshadowed other market drivers, with investors anticipating significant volatility in ETFs such as XLE and OIH.