Brent crude oil prices rose sharply on Thursday, climbing above $94 per barrel after Iran announced plans to close the Strait of Hormuz, one of the world’s most important energy shipping routes.
The announcement came after the United States launched additional military strikes against Iran. At the same time, U.S. President Donald Trump warned that Washington could carry out stronger attacks if Iranian leaders refuse to sign a peace agreement.
Brent crude gained $1.48 and reached $94.58 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude increased by $1.71 to $91.74 per barrel. During early Asian trading, WTI prices jumped by nearly $3 before giving up part of those gains later in the session.
Iran’s Joint Armed Forces Command announced the closure of the Strait of Hormuz to commercial and oil tankers. Military officials stated that forces could target any vessel attempting to pass through the strategic waterway. The Strait handles a significant share of global oil exports, making it one of the most critical energy corridors in the world.
Analysts at ING said the latest developments suggest that a diplomatic solution remains distant. They noted that the growing conflict could severely disrupt energy shipments from the Gulf region. According to the bank, escalating military tensions drove oil prices higher during morning trading.
On Wednesday, the U.S. military stated on its official X account that commercial vessels continued to move through the Strait of Hormuz. Officials also denied reports that Iranian missiles or drones had targeted any U.S. warships in the area. Iranian media outlets had earlier claimed that attacks occurred near the strategic passage.
The United States began a new wave of military operations against several targets inside Iran at 12:15 a.m. Erbil time on Thursday. Later, Trump told Fox News that military action could stop soon. However, he warned that the United States would intensify its bombing campaign if Iran’s leadership failed to immediately reach an agreement with Washington.
Oil prices also received support from supply data. The U.S. Energy Information Administration (EIA) reported that U.S. crude oil inventories fell by 7.2 million barrels last week to 426.5 million barrels. Analysts had expected a decline of only 4 million barrels. The larger-than-expected draw signaled stronger demand and added further upward pressure on global oil prices.
As geopolitical risks increase and supply concerns grow, energy markets remain highly sensitive to developments in the Middle East. Traders will continue monitoring military actions and diplomatic efforts for clues about the next direction of oil prices.
