Front-month WTI crude futures jumped 3.5% to $106.44 per barrel, while Brent crude rose 2.4% to $115.49 after Iranian forces struck a Kuwaiti oil tanker near Dubai port. The assault occurred while the vessel was anchored in U.A.E. waters, per Kuwait Petroleum Corporation reports. Analysts emphasize this reflects geopolitical risk premiums rather than supply disruptions, with transport security concerns dominating market sentiment.

FXCM’s Russell Shor notes, “Volatility remains the dominant feature” until regional stability improves. Brent’s rally underscores Gulf chokepoint vulnerabilities, with traders monitoring potential retaliatory actions. U.S. officials have not confirmed Iranian involvement, though satellite imagery and regional sources suggest state-backed perpetrators. Brent’s premium over WTI widened to $9.05, reflecting heightened European exposure to Middle East risks.