Oil Prices Spike 5% After Iran Claims Missile Strike on US Vessel Before CENTCOM Denial Rolls Markets Back

Iran claimed missiles hit a U.S. warship near Jask, but U.S. Central Command denied it — oil markets swung sharply on the clashing accounts. (Credit: MC3 Carla Ocampo/WikiMedia Commons)

Oil markets lurched sharply on Monday after Iran's semi-official Fars news agency, which is linked to the Islamic Revolutionary Guard Corps, claimed that two missiles had struck a US Navy warship near the port of Jask at the southern entrance to the Strait of Hormuz. Brent crude futures jumped more than 5% to £85.89 ($113.78) a barrel, while US benchmark West Texas Intermediate rose more than 3% to £79.17 ($105.11) a barrel, as investors braced for a fresh escalation in the two-month-old conflict.

The surge proved short-lived. US Central Command moved quickly to rebut the claim, posting on its official X account: 'No US Navy ships have been struck. US forces are supporting Project Freedom and enforcing the naval blockade on Iranian ports.' Once the denial circulated, oil prices pared most of their gains, settling at around 2.5% above earlier levels by mid-afternoon GMT.