News Desk
SINGAPORE: Global oil prices rose sharply on Thursday after renewed escalation between the United States and Iran, with traders reacting to reports of attacks and the closure of the Strait of Hormuz, a key global energy route. Brent crude futures climbed $1.48, or 1.59%, to $94.58 a barrel, while US West Texas Intermediate (WTI) rose $1.71, or 1.90%, to $91.74 by early morning trade. Prices had briefly surged by more than $3 earlier in the session.
The increase came after Tehran announced the closure of the Strait of Hormuz, through which nearly a fifth of global oil and gas shipments pass, warning that vessels attempting to transit the waterway could be targeted. The escalation followed additional US military strikes on targets in Iran, announced late Wednesday, intensifying an already volatile exchange that has unsettled energy markets worldwide.
US President Donald Trump told Fox News reporter Trey Yingst that the strikes would continue if Tehran failed to reach an agreement with Washington, warning of further action if no deal was signed. Analysts said the developments suggested that a diplomatic resolution remained distant and that energy flows from the Persian Gulf were likely to remain under pressure.
Market research firm ING said the renewed escalation had driven early morning gains in oil prices, reflecting concerns over supply disruption. US officials said commercial shipping continued to move through the Strait of Hormuz, while rejecting reports that American naval vessels had been struck in the area.
The US Energy Information Administration also reported a 7.2 million barrel decline in crude inventories for the week ending June 5, far exceeding market expectations and adding further support to prices. The broader supply outlook remains tight, with OPEC production reportedly falling to its lowest level in more than two decades amid ongoing regional disruptions and reduced flows from key producers.
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