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Oil Prices Climb After US Launches Fresh Strikes Against Iran
Oil prices increased on Thursday following reports of new U.S. military strikes against Iran, heightening geopolitical tensions in the Middle East. Brent crude futures rose 78 cents, or 1%, to $78.8 a barrel, while U.S. West Texas Intermediate (WTI) crude futures climbed 74 cents, or 1.01%, to $74.26 a barrel. Both benchmarks had previously settled at their highest levels in over two weeks.
The U.S. military stated the latest strikes are aimed at ensuring the Strait of Hormuz remains open to traffic. This action followed a declaration by President Donald Trump that an interim agreement to end the conflict was "over." The U.S. said its attacks were a direct response to an assault on three tankers transiting the strait on Tuesday.
The conflict has seen actions from both sides. Iran announced on Wednesday that it had attacked U.S. military sites in Bahrain and Kuwait in retaliation for earlier American strikes. The U.S. attacks reportedly affected several cities along Iran's southern coast, causing power outages in some areas.
AdThe escalation has renewed concerns over the security of the Strait of Hormuz, a chokepoint for approximately one-fifth of pre-war global oil supplies. In response to the renewed vessel attacks, some maritime insurance underwriters are reportedly advising shipping companies to pause voyages through the strait, potentially impacting future oil transit.