Oil jumps more than 2% after Vance says Iran ignored key U.S. demand, military strikes on the table

Oil prices surged more than 2% globally on Wednesday as traders reacted to comments from U.S. Vice President J.D. Vance stating that Iran has ignored key American demands, with military strikes now considered a potential option amid escalating tensions that threaten crude supplies from the Middle East. The sharp increase in benchmark crude futures reflects growing anxiety among investors about potential supply disruptions in one of the world's most critical oil-producing regions. Vance's remarks came during a press conference where he emphasized that diplomatic channels remain open but warned that all options, including military force, are being considered if Iran continues to disregard U.S. requests regarding its nuclear program and regional activities. Energy analysts note that any direct conflict between the two nations could immediately impact approximately 20% of global oil supplies that transit through the Strait of Hormuz, a narrow waterway essential for international oil trade.