Oil Prices Jump as Fresh U.S. Strikes on Iran Reignite Strait of Hormuz Fears
By Aboki Forex —
Oil prices surged on Thursday after the United States launched fresh military strikes inside Iran. The attacks renewed worries about disruptions to commercial shipping through the Strait of Hormuz, a critical chokepoint for global crude supplies.
Brent crude futures, the international benchmark, climbed more than 3% to $97.29 per barrel. The U.S. West Texas Intermediate (WTI) contract rose 3.42% to $91.71 per barrel.
Iran’s Revolutionary Guards said they targeted a U.S. airbase around 4:50 a.m. local time on Thursday. The Guards did not give the exact location of the base, according to Iran’s semi-official Tasnim news agency.
The Iranian announcement came after American forces struck a military site in Iran that a U.S. official said posed a threat to American troops and commercial vessels passing through the Strait of Hormuz. U.S. forces also intercepted and shot down several Iranian drones, the official told MS NOW.
Despite the price jump, analysts at Citi said in a note late Wednesday that oil markets were finding firmer footing. Investors are increasingly pricing out worst-case supply disruption scenarios as signs emerge that Washington and Tehran are moving closer to a deal.
Still, Citi warned that uncertainty over the timing of any agreement is keeping central banks on edge. Policymakers are weighing tighter monetary settings to counter energy-driven inflation risks.
The prolonged run-up in crude prices is beginning to spill into broader inflation pressures, especially through “second round effects,” the bank said. This has pushed some central banks to lean more hawkish.