The US Iran war latest news oil prices today tells a sharply escalating story: American forces struck more than 50 military targets on Kharg Island, the hub through which Iran exports 90% of its crude, sending oil surging more than 3% to nearly $116 per barrel within minutes of the first reports.

The US Iran war latest news oil prices today sent a fresh shock through global energy markets on Tuesday as US forces struck more than 50 military targets on Kharg Island, Iran’s largest oil export hub, hours before President Trump’s 8 PM ET deadline expired. Iran’s semi-official Mehr News Agency reported multiple explosions on the island as early as 1:30 PM local Tehran time, and oil surged immediately, with US crude jumping over 3% to nearly $116 per barrel and Brent crossing $110.

VP JD Vance confirmed the strikes during a press conference with Hungarian Prime Minister Viktor Orbán in Budapest, characterizing them as “re-strikes” on previously targeted sites. “I don’t think the news about Kharg Island changes anything,” Vance said, insisting the attacks did not touch oil infrastructure and did not alter the president’s strategy ahead of the evening deadline.

Why Kharg Island Is the Nerve Center of Iran’s War Economy

Kharg Island handles roughly 90% of Iran’s crude oil exports and carries a loading capacity of about 7 million barrels per day, making it the primary financial lifeline of Tehran’s war-era economy. Iran earns an estimated $53 billion in net oil export revenues annually, about 11% of its GDP, almost entirely flowing through the island’s pipelines and terminals.

The US has now struck the island twice since the war began February 28. The first attack in mid-March destroyed naval mine storage facilities, missile bunkers, and air defense systems while preserving oil infrastructure. Tuesday’s strikes hit some of the same sites, according to a US official, again stopping short of targeting the oil terminal itself. Whether that restraint holds after 8 PM is the question driving markets.

What an Oil Infrastructure Strike Would Mean

Analysts have warned that striking Kharg’s oil terminal would have immediate and lasting consequences. “A direct hit on Iran’s export terminal would instantly shut down most of its 1.5 million barrels per day crude exports,” JPMorgan data cited by CNBC showed. “Destruction of its oil infrastructure would take years to rebuild, leaving the country deprived of its most critical source of revenue,” Vandana Hari of Vanda Insights told CNBC.

Iran has already telegraphed its response. The IRGC warned Tuesday that it would “deprive the US and its allies of the region’s oil and gas for years” if the civilian infrastructure strikes go forward. It also signaled that restraint toward Gulf Arab states hosting US military assets is now over, saying “all such considerations have been lifted” — a direct threat to regional energy facilities in Saudi Arabia, Kuwait, and the UAE.

Bitcoin and Crypto Markets Under Fresh Pressure

As crypto.news reported, each round of escalation in this conflict has pushed oil higher and Bitcoin lower, with the Strait of Hormuz closure already keeping crude above $100 for weeks and compressing Federal Reserve flexibility on rate cuts. Crypto.news also noted that major cryptocurrencies have dropped 3 to 5% during prior escalation phases, as higher oil prices feed directly into inflation expectations and reduce appetite for risk assets.

Tonight’s 8 PM deadline, and what follows it, will determine the next major move for both energy and crypto markets.