Brent Crude Hits $117 as Iran Bars US Navy from Gulf

Brent crude prices climbed to approximately $117 per barrel on Saturday, marking the highest level since April. The surge follows Iranian military leaders declaring that the United States Navy is barred from re-entering the Persian Gulf. This declaration comes as shipping lanes around the Strait of Hormuz remain under frequent attack, directly impacting global energy supply chains.

Ali Abdollahi, the chief of general staff of Iran's armed forces, issued the warning in a statement carried by state media. He stated that the US Navy cannot enter Iranian territorial waters or surrounding areas because Iran can target any vessel in the region. Abdollahi claimed that the US president can only dream of American soldiers and military assets entering the Gulf again. He noted that American rhetoric is contradictory, arguing that Washington’s refusal to move aircraft carriers closer to Iranian territory undermines claims that Iran's military capabilities have been largely destroyed.

The price increase reflects heightened risk premiums in the market. The Islamic Revolutionary Guard Corps reported that seven tankers were attacked or hit mines during the overnight period into Thursday. On Friday, the IRGC claimed two supertankers struck mines. These incidents have made shipping through the Strait of Hormuz, a critical artery for global oil trade, increasingly dangerous. The IRGC has stated its military doctrine has become more offensive in response to the conflict that began in February.

US President Donald Trump indicated on Friday that Washington has not settled on its next strategic move. Speaking at a rally in Florida, he suggested the US military may launch another large-scale bombing campaign, which he referred to as another "Epic Fury." Trump weighed the option of ending the fighting quickly with massive strikes against maintaining the naval blockade and sanctions to pressure Tehran. Meanwhile, US intelligence agencies reported that Iran has substantially increased efforts to strike American officials in the Middle East and other locations.

Diplomatic efforts to resolve the conflict have stalled. Senior diplomats from Turkiye, Saudi Arabia, Pakistan, and Egypt met with counterparts from the UK, France, Germany, and Italy in Istanbul on Friday. The United States and Iran were not present at the talks. Hakan Fidan, the Foreign Minister of Turkiye, said a new attack on Iran would widen the war and spread conflict across the region. He added that no one is endorsing such an attack at this point. German Foreign Minister Johann Wadephul blamed Iran and the Houthis for regional instability, while the four regional ministers cited Israeli occupation as the main source of instability.

The conflict has expanded to other fronts. The Iran-allied Houthis in Yemen struck Riyadh on Saturday, following recent attacks on Dammam's international airport and the Shaybah oilfield. Saudi forces responded by bombing Houthi-held areas including Marib and Taiz. In southern Lebanon, Israeli air strikes hit areas near Nabatieh, and artillery fell near Zawtar ash-Sharqiyah. Israeli Prime Minister Benjamin Netanyahu ordered a lockdown of the occupied West Bank after a Palestinian attack killed two soldiers in Hebron.

Iranian state-linked media claim Tehran has activated a "dead hand" doctrine. This doctrine would allow attacks on US, Israeli, and regional interests to continue from all 31 provinces if senior leaders are assassinated. The IRGC has also threatened seabed internet and communication cables if civilian infrastructure is targeted again. Reformist newspaper Etemad suggested that the "zero hour" of another intense round of fighting is approaching, while analyst Reza Nasri wrote that Iran will no longer negotiate under bombardment.

Washington has reportedly ordered many diplomatic staff to leave Saudi Arabia, with others due to leave additional countries in the region. The combination of military posturing, physical attacks on shipping, and stalled negotiations has created a volatile environment for energy markets. Investors are closely monitoring the Strait of Hormuz for further disruptions that could push oil prices higher or trigger a supply shock.