Oil prices climbed on Thursday after the United States launched fresh strikes on Iran, weakening hopes for a resolution to the conflict and the full reopening of the Strait of Hormuz, a vital shipping route that carried around one-fifth of global oil supplies before the war.
Brent crude futures gained 78 cents, or 1%, to $78.80 a barrel by 0054 GMT, while U.S. West Texas Intermediate (WTI) crude rose 74 cents, or 1.01%, to $74.26 a barrel.
Both Brent and WTI extended gains in after-hours trading on Wednesday, rising by more than $1 after the U.S. military initiated a new wave of strikes against Iran.
Earlier in the session, both benchmarks had already settled at their highest levels in more than two weeks after U.S. President Donald Trump warned that additional military action against Iran could begin as early as Wednesday night.
The U.S. military said the latest strikes were intended to ensure the Strait of Hormuz remains open to maritime traffic, just hours after President Donald Trump declared that an interim agreement aimed at ending the conflict was “over.”
According to IG analyst Tony Sycamore, the recent surge in oil shipments through the strait has likely come to an end, with shipowners expected to adopt a more cautious approach amid the escalating tensions.
