Crude oil prices surged more than $2 per barrel on Thursday following Iran’s announcement that it was shutting down the Strait of Hormuz, a vital shipping lane for global energy supplies, in response to fresh US military strikes against Iranian targets.
Brent crude futures jumped $2.30, representing a 2.47% increase to reach $95.40 per barrel. US West Texas Intermediate crude saw an even steeper climb of $2.60, or 2.89%, settling at $92.63. Earlier during trading, US crude futures had gained more than $3.
Iran’s top joint military command declared Thursday that the Strait of Hormuz was now closed to all vessels, including oil tankers and commercial ships, warning that any ship attempting to pass through would face gunfire.
The US military countered these claims on X Wednesday, stating that commercial vessels were still moving through the waterway without incident.
Military officials also denied Iranian state media reports that US ships near the strait had been hit by missiles and drones, confirming that no US warships sustained damage in the area.
American forces initiated new strikes against multiple Iranian targets beginning at 5:15 p.m. EDT (21:15 GMT), marking the latest development in an escalating conflict that threatens to restart full-scale warfare. The two nations had maintained a fragile ceasefire agreement reached in early April.
The strait, which typically handles one-fifth of worldwide oil and gas transportation, has been under Iranian blockade for months, contributing to sustained higher oil prices.
In related energy market news, the EIA reported Wednesday that US crude inventories dropped by 7.2 million barrels to 426.5 million barrels for the week ending June 5. This decline exceeded analyst predictions from a Reuters survey, which had forecast a 4 million-barrel decrease.
Since the conflict with Iran began on February 28, US crude inventories, including strategic reserves, have declined by 79 million barrels as the nation has worked to compensate for supply disruptions caused by the strait’s effective closure.
