Rubio says US should have struck Iran sooner as oil tops $100

The top US diplomat acknowledged Washington should have struck Iran sooner as Brent crude above $100 threatens Asian allies reliant on the Strait of Hormuz.

US Secretary of State Marco Rubio said the US should have attacked Iran earlier and pledged to help Japan secure oil supplies, as Brent crude traded above $100 a barrel for a second week amid the worst Middle East supply disruption in decades.

"We should have acted sooner to prevent this crisis from reaching global markets," Rubio said at the ASEAN foreign ministers' meeting in Manila, according to a pool report. The remarks came as the US launched its 13th consecutive night of strikes against Iranian targets.

Iran's health ministry reported 55 killed and 629 wounded since the US campaign began June 27. Brent crude has surged more than 6% to breach $100, the highest since before a preliminary peace agreement collapsed last month. The US has also restored a naval blockade of Iran's ports, with Central Command saying it redirected about a dozen commercial vessels.

The Strait of Hormuz handles about a fifth of global oil trade, and Iran's demand to control the waterway threatens to choke supply to Asian economies that imported roughly 80% of their crude and 90% of their LNG through the chokepoint in 2025, according to the International Energy Agency. Rubio warned Asian leaders that allowing a nation to control an international waterway would set a "very dangerous precedent" that could be repeated elsewhere.

Rubio's acknowledgment that the US should have struck earlier marks a notable shift in tone from the Trump administration, which had pursued a preliminary peace deal with Tehran before it collapsed in June. The secretary of state also confirmed that Iran has been reaching out to the US, both directly and indirectly, to engage in talks — though he said Washington would not "sit by and let ships be blown up or Americans be attacked."

The conflict has created a double supply shock. Beyond the Strait of Hormuz closure, Yemen's Houthi rebels struck two Saudi oil tankers — the Encelia and the Layla — in the Red Sea this week, threatening the Bab el-Mandeb chokepoint through which about 12% of global trade passes. Saudi Arabia has diverted millions of barrels a day of oil exports to its Red Sea port of Yanbu via an overland pipeline, but the Houthi attacks now put that alternative route at risk, according to maritime data firm Lloyd's List Intelligence.

Asian Allies Face Energy Crunch

Rubio's pledge to help Japan with oil supplies underscores the severity of the supply disruption for Asia's largest economies. Japan relies on the Middle East for about 90% of its crude imports, giving it the most acute exposure among developed Asian nations. The IEA has called the crisis a "stark wake-up call" for the region's energy security.

Australian Foreign Minister Penny Wong, also attending the ASEAN meetings, said the situation "could deteriorate further without much warning" and called for an end to the war and the reopening of the strait. "People are being affected by what is happening and has happened to global energy markets," Wong told reporters.

Diplomatic Front Opens

Rubio is scheduled to meet Russian Foreign Minister Sergey Lavrov on Thursday to discuss the war in Ukraine, though the Iran crisis is expected to dominate the agenda. Lavrov told reporters in Manila that Moscow would like to see a quick settlement between the US and Iran, noting that the conflict "impacts the global economy and Russia is part of the global economy."

The last time oil traded above $100 for an extended period was following Russia's invasion of Ukraine in 2022, when Brent peaked at $139. That episode triggered a coordinated release of strategic petroleum reserves by the US and its allies — a playbook the Trump administration has not yet activated.

This article is for informational purposes only and does not constitute investment advice.