Oil Surges Past $126 as Israeli Defense Chief Signals Iran Strike 'Required,' Tehran Vows to Guard Nuclear Program

Brent crude spiked to $126 per barrel Thursday before retreating to around $114, as Israeli Defense Minister Israel Katz declared Tel Aviv would need to act again against Iran to prevent it from developing long-term nuclear capabilities. The remarks, signaling potential escalation in ongoing tensions, triggered immediate movement in energy markets as traders weighed the risk of supply disruption across the Persian Gulf.

Katz stated that Israel would need to strike Iran again to ensure the regime "cannot threaten Israel for years to come." The declaration came alongside fresh reports of Israeli defense build-up at ports and air hubs, suggesting operational planning is underway. In response, Mojtaba Khamenei—whose written statement was read aloud on Iranian state television—indicated Iran would "guard" its "advanced technologies" as it guards its own borders. Tehran also pledged to "secure the Persian Gulf region" and counter any hostile exploitation of the waterway, a signal that Iran views the Strait of Hormuz as central to any retaliatory calculus.

The Trump administration is now weighing further military options, with CENTCOM chief General Michael Kurilla scheduled to brief the President at the White House. The US military simultaneously teased deployment of cutting-edge, battle-untested hypersonic missiles to the Middle East region, a move analysts interpret as signaling resolve to Tehran. Oil prices have climbed to their highest levels since 2022, and traders are closely monitoring tanker traffic and satellite imagery of regional staging areas for signs of imminent action.