Crude oil prices rallied on Thursday after the US launched additional strikes against Iran, and the Islamic Republic declared the critical energy chokepoint, the Strait of Hormuz, closed.
Brent futures gained 1.57% to $94.56 a barrel, while US West Texas Intermediate (WTI) crude rallied 1.89% to $91.73 a barrel. US crude futures gained more than $3 earlier in the session.
Iran’s top joint military command announced the closure of the Strait of Hormuz on Thursday, including oil tankers and commercial ships, saying any vessel that will attempt passage will be shot at, Reuters reported.
However, the US military said that commercial ships continue to transit in and out of the strait.
The US military’s Central Command announced that its strikes on Iran had concluded approximately four hours after commencing shortly after midnight in Tehran. In a post on X, the command stated that the targets included “military surveillance capabilities, communication systems, and air defense sites across Iran.”
Concerns over a potential blockade of the Strait of Hormuz — a key maritime route that facilitates nearly one-fifth of global oil and gas shipments — have kept crude oil prices elevated.
Crude Oil Inventories
US crude inventories fell by 7.2 million barrels to 426.5 million barrels in the week ended June 5, the EIA said, compared with analysts’ expectations in a Reuters poll for a 4 million-barrel draw.
US crude oil inventories, including those from strategic reserves, have fallen by 79 million barrels since the Iran war began on February 28, Reuters reported.
(With inputs from Reuters)
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