Core Event
On Thursday, Asian trading saw oil prices climb further after the United States launched a fresh round of strikes on Iranian targets overnight. President Donald Trump warned that Washington would "attack Iran very hard" if negotiations failed, and U.S. forces subsequently carried out the strikes. 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 ship attempting to transit would be targeted.
Price Impact
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) for the same month jumped 2.6% to $92.33 per barrel. Both contracts had already advanced nearly 2% in the prior session.
Geopolitical Developments
The Strait of Hormuz is one of the world’s most critical energy chokepoints, handling a substantial share of global seaborne crude exports. The U.S. disclosed that its military had been escorting oil shipments through the strait, reporting that more than 100 million barrels had moved under U.S. protection, underscoring the strategic importance of keeping the route open. The latest U.S. attacks followed a previous day’s strikes that were retaliation for the downing of a U.S. Army Apache helicopter near the strait.
Inventory Data
Data from the U.S. Energy Information Administration showed that crude oil inventories fell by 7.2 million barrels in the week ended 5 June, a draw far larger than analysts’ expectations of roughly a 3 million‑barrel decline.
Inflation Context
U.S. consumer inflation accelerated to 4.2% in May, heightening concerns that central banks may keep interest rates elevated for a longer period, which could further pressure energy prices.