Oil prices climbed on Thursday after the United States carried out additional military strikes against Iran, dimming hopes for a negotiated end to the conflict and casting doubt on whether the Strait of Hormuz — a vital passage for roughly one-fifth of global pre-war oil supplies — would fully reopen anytime soon.
Brent crude futures gained 78 cents, or about 1%, reaching $78.80 per barrel as of 0054 GMT. Meanwhile, U.S. West Texas Intermediate crude futures climbed 74 cents, or 1.01%, to $74.26 per barrel.
Both major oil benchmarks — WTI and Brent — had already jumped more than a dollar during after-hours trading on Wednesday, once the U.S. military began its latest round of strikes. Earlier that day, the benchmarks had closed at their highest levels in more than two weeks, following threats from President Donald Trump that new strikes could come as early as Wednesday night.
The U.S. military announced the new offensive was aimed at keeping the Strait of Hormuz open to commercial vessel traffic. The strikes came just hours after President Trump declared that a temporary agreement to end the war was effectively “over.”
IG analyst Tony Sycamore noted in a written assessment that the surge in oil shipments through the strait seen in recent weeks has now come to a halt, with vessel owners expected to adopt a more cautious approach going forward.
According to U.S. officials, the latest attacks were a direct response to Tuesday’s assault on three tankers that were passing through the strait. The strikes reverberated across multiple cities along Iran’s southern coastline, leaving some areas without electricity.
Iran, for its part, said Wednesday that it had struck U.S. military installations in Bahrain and Kuwait in retaliation for earlier American attacks on Iranian infrastructure.
Insurance industry sources confirmed Wednesday that some war risk underwriters have urged shipping companies to hold off on trips through the Strait of Hormuz, while others are re-examining their policy terms following Iran’s renewed attacks on vessels.
