Overview
The United States carried out a new round of air strikes on Iranian targets, after which Iran’s military announced the complete closure of the Strait of Hormuz to all vessel traffic, including oil tankers and commercial ships. President Donald Trump warned that Washington would "attack Iran very hard" if negotiations failed and disclosed that U.S. forces had been escorting oil shipments through the strait, with more than 100 million barrels having moved under U.S. protection.
Price Movements
In Asian trade on Thursday, Brent crude futures for August delivery rose 2.1% to $95.02 per barrel, while West Texas Intermediate (WTI) futures for the same month increased 2.6% to $92.33 per barrel. Both contracts had already advanced close to 2% in the preceding session.
Inventory Data
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, a draw that far exceeded analysts’ expectations of a roughly 3 million‑barrel decline.
Inflation Data
U.S. consumer price inflation accelerated to 4.2% year‑over‑year in May, intensifying market concerns that central banks may keep interest rates elevated for a longer period.
Strategic Context
The Strait of Hormuz is a critical global energy chokepoint, handling a substantial share of seaborne crude exports. Iran’s decision to halt all traffic raises the risk of supply disruptions, while the U.S. military’s escort operations aim to keep the waterway open for the estimated 100 million barrels that have already transited under protection. The combination of heightened geopolitical tension, a sharp inventory draw, and rising inflation underpins the recent surge in oil prices.