Following the recent military strikes by the United States on Iran, oil prices have seen a significant increase. The US Central Command (Centcom) confirmed that the strikes targeted a military facility in Bandar Abbas, a key port city in Iran. Additionally, US forces intercepted and shot down four Iranian drones that were deemed a threat in the vicinity of the Strait of Hormuz. As a result of these developments, the global oil benchmark, Brent crude, surged by 3.75%, reaching $97.83 per barrel, while US-traded crude oil rose by 4% to $92.22. This escalation in conflict occurs despite an ongoing ceasefire and negotiations aimed at resolving a three-month-long conflict that has disrupted shipping in the Strait of Hormuz, a vital waterway through which approximately 20% of the world's oil and liquefied natural gas supplies are transported. Iran has responded to these military actions by threatening to target vessels navigating this critical shipping route.