Oil Prices Surge After Iran Claims Strike on U.S. Warship

Oil prices surged after Iran claimed that two missiles struck a U.S. Navy ship near the Strait of Hormuz—a report denied by United States Central Command, Chris Tolomia reported for Quartz.

Oil prices fluctuate as tensions rise near the Strait of Hormuz.

Iran’s state-affiliated Fars News Agency said the vessel had been warned repeatedly before allegedly entering restricted waters. CENTCOM rejected the claim, stating: “No U.S. Navy ship has been struck.”

At its peak, Brent crude oil rose 5%, later trimming gains to about 3.2% at $111.95 per barrel.

West Texas Intermediate followed a similar pattern, settling around $104.97.

The escalation coincides with the launch of “Project Freedom,” a U.S. military operation announced by President Donald Trump to secure commercial shipping through the region.

CENTCOM said the mission includes guided-missile destroyers, over 100 aircraft, unmanned systems, and about 15,000 personnel.

Iran has warned the operation violates a ceasefire and threatens retaliation.