Oil prices climbed on Thursday after Iran announced the closure of the Strait of Hormuz following fresh U.S. military strikes, raising fears of disruptions to global crude supplies.
As at the time of writing 05:48 am (WAT), Brent crude rose 1.40% to $94.40 per barrel, while U.S. West Texas Intermediate (WTI) gained 1.58% to $91.45 per barrel.
The latest escalation comes after U.S. forces launched additional strikes on Iranian military targets. In response, Iran said it had closed the Strait of Hormuz, a critical shipping route that handles a significant portion of global oil trade.
The development has heightened concerns across energy markets, with traders closely monitoring the security of the waterway and the risk of further military action in the Gulf region.
Market sentiment was also supported by a decline in U.S. crude inventories, adding to expectations of tighter supply conditions.
Although U.S. officials have disputed reports that the Strait has been fully closed, uncertainty surrounding the conflict continues to support oil prices.
Analysts warn that any prolonged disruption to shipping through the Strait of Hormuz could trigger further gains in crude prices and increase volatility across global energy markets.