Oil Prices Surge as US-Iran Tensions Deepen

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Global oil prices rose sharply on Thursday as renewed military escalation between the United States and Iran fuelled concerns over energy supplies and regional stability.

Brent crude futures climbed by $1.48, or 1.59 percent, to $94.58 per barrel, while US West Texas Intermediate (WTI) crude gained $1.71, or 1.9 percent, reaching $91.74 a barrel in early trading. Prices had surged by more than $3 earlier in the session amid mounting uncertainty.

The gains followed fresh US military strikes on targets in Iran and Tehran’s announcement that the Strait of Hormuz — a vital global energy corridor — would remain closed to oil tankers and commercial vessels.

Iran’s joint military command said any vessel attempting to pass through the waterway would face military action, heightening fears of severe disruptions to global oil and gas supplies.

The Strait of Hormuz is one of the world’s most critical shipping routes, handling roughly one-fifth of global oil and gas trade. Continued restrictions on the route have intensified concerns over supply shortages and pushed energy prices higher.

Market analysts said the latest escalation signals that diplomatic efforts remain far from resolution, increasing the likelihood of prolonged disruptions in Gulf energy flows.

Meanwhile, the US military said commercial shipping activity in the strait continued despite tensions and reported no damage to US naval vessels operating near the area.

The renewed hostilities come after additional US strikes on multiple Iranian targets, marking another escalation in a conflict that had briefly eased following a fragile ceasefire earlier this year.

US President Donald Trump warned that further military action could follow if Tehran failed to reach an agreement with Washington, adding to market unease.

Oil markets were also supported by a sharp drop in US crude inventories. Official data showed US crude stockpiles fell by 7.2 million barrels in the week ending June 5, exceeding analysts’ expectations and reinforcing concerns over tightening global supply.

At the same time, oil production among major exporting countries has remained under pressure, further contributing to upward momentum in prices as geopolitical risks continue to dominate market sentiment.