US Seeks Hypersonic Missiles as Brent Crude Surges 7% to 4-Year High

Brent crude futures for June delivery surged nearly 7 percent to $126.2 a barrel after reports that the U.S. military wants to position "Dark Eagle" hypersonic missiles for potential use against Iran, signaling a significant technological escalation in the two-month-old conflict.

"We've had historic successes, and if we need to go at it again to ensure that success, we are prepared to," War Secretary Pete Hegseth told the House Armed Services Committee on Wednesday, defending the operation's estimated $25 billion cost to date.

The price jump brings Brent to its highest level in four years, while West Texas Intermediate crude rose 3 percent to $110.1 a barrel. The request for the hypersonic system, which has not been declared fully operational, comes as U.S. Central Command seeks to target Iranian missile launchers moved beyond the reach of the military's 300-mile range Precision Strike Missile, according to a Bloomberg report.

The potential deployment of hypersonic weapons introduces a new dimension to the conflict, threatening to unravel a fragile ceasefire in place since April 7 and further tighten global energy supplies. With Iran's main oil export terminal nearing storage capacity under a U.S. blockade, any further disruption risks pushing crude prices toward the $140 a barrel mark forecasted by Iranian officials, amplifying global inflationary pressures.

Blockade and Budget Battle

The market reaction underscores the effectiveness of the U.S. blockade on the Strait of Hormuz, which President Donald Trump said has Iran "choking like a stuffed pig." The Treasury Department said its "Operation Economic Wrath" has disrupted tens of billions of dollars in revenue for Tehran. The administration is now seeking a $1.5 trillion defense budget for fiscal 2027 to rebuild munitions stockpiles drawn down by the conflict, dubbed Operation Epic Fury.

Acting War Department Comptroller Jules Hurst confirmed the operation's cost "stood at roughly $25 billion" so far, with most of the spending tied to munitions. The figure became a flashpoint in the House hearing, with Democrats questioning the cost. "Your $25 billion number is totally off," Representative Ro Khanna claimed, arguing it didn't reflect the broader economic hit. Hegseth countered by asking, "What would you pay to ensure Iran doesn’t get a nuclear bomb?"

The Hypersonic Edge

The request for the Dark Eagle missile system highlights Pentagon concerns over its own weapons gap, as both China and Russia have already fielded similar hypersonic weapons. These missiles travel at over five times the speed of sound and have unpredictable flight paths, making them nearly impossible to intercept with current defense systems. U.S. Central Command's request argues the weapon is necessary to hold deep-inland Iranian assets at risk, a capability it says has been diminished as Tehran repositions its forces.

While the system remains in development, its potential arrival in the theater adds significant leverage to U.S. diplomatic pressure. President Trump has maintained the blockade will not be lifted until a permanent nuclear deal is signed. "They better get smart soon!" Trump wrote on Truth Social. Meanwhile, IAEA Director-General Rafael Grossi said his agency believes a large share of Iran's 440.9 kilograms of uranium enriched to 60 percent purity remains buried at its Isfahan nuclear complex, unverified since the conflict began.

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