Oil prices climbed on Thursday after renewed U.S. military strikes against Iran renewed fears of supply disruptions across the Middle East. Investors closely monitored the latest developments as tensions increased around one of the world’s most important energy routes.
Brent crude futures rose 3.07% to $78.85 per barrel, according to Mettis Global. Meanwhile, West Texas Intermediate (WTI) crude futures gained $1.63, or 2.24%, to reach $74.29 per barrel by 9:54 a.m. PST.
The rally followed confirmation from the U.S. Central Command that it had launched fresh strikes on Iranian targets. The military said the operation responded to attacks by Tehran on commercial vessels operating near the Strait of Hormuz.
Hormuz Risks Keep Markets on Edge
Meanwhile, U.S. President Donald Trump said the chances of renewed negotiations with Iran had weakened. Earlier, he also declared that the ceasefire between Washington and Tehran had ended after a new wave of regional hostilities.
Consequently, traders are reassessing the risk of disruptions to shipping through the Strait of Hormuz, a vital corridor for global oil exports. According to CNBC, the renewed conflict has increased concerns over the security of maritime traffic in the region.
Furthermore, analysts at Saxo warned that additional attacks on commercial shipping or further deterioration in U.S.-Iran relations could delay the restoration of normal trade flows through the strategic waterway.
The Strait of Hormuz remains one of the world’s most important energy chokepoints. Therefore, even temporary shipping disruptions could lift crude oil prices, increase freight costs, and weaken overall market confidence as global energy markets react to rising geopolitical uncertainty.
