Oil prices extended their upward trajectory in Asian trading hours on Thursday following a new round of U.S. strikes against Iranian targets. President Donald Trump warned that Washington would "attack Iran very hard" if negotiations failed, and U.S. forces carried out the strikes overnight. In retaliation, Iran’s military announced the complete closure of the Strait of Hormuz to all vessel traffic, including oil tankers and commercial ships, stating that any vessel attempting to transit would be targeted. The strait, a critical global energy chokepoint, handles a substantial share of worldwide seaborne crude exports.
At 20:01 ET (00:01 GMT), Brent crude futures for August delivery rose 2.1% to $95.02 per barrel, while West Texas Intermediate (WTI) futures for the same month jumped 2.6% to $92.33 per barrel. Both contracts had already advanced close to 2% in the preceding session. Trump also disclosed that the U.S. military had been escorting oil shipments through Hormuz, noting that more than 100 million barrels had moved through the waterway under U.S. protection, underscoring the strategic importance of keeping the route open.
Supporting the price rally, data from the U.S. Energy Information Administration showed that U.S. crude oil inventories fell by 7.2 million barrels in the week ended 5 June, far exceeding analysts’ expectations of a roughly 3 million‑barrel draw. The sharp inventory decline contributed to the bullish market sentiment.
Investors are also watching broader macro‑economic implications, as U.S. consumer inflation accelerated to 4.2% in May. The higher inflation reading fuels concerns that central banks may maintain elevated interest rates for a longer period, adding further upward pressure on energy prices.
Overall, the combination of heightened geopolitical tension in the Persian Gulf, a significant drawdown in U.S. crude stocks, and rising inflation expectations has propelled oil prices to near‑$95 per barrel levels.