Oil Prices Increase as U.S. Forces Strike Iran Again
Oil prices rose as escalating military exchanges between the US and Iran and renewed tensions surrounding the Strait of Hormuz heightened fears of disruptions to global crude supplies.
US forces launched strikes on multiple targets in Iran for the second consecutive day amid peace talks between Washington and Tehran.
Brent crude traded at $93.33 per barrel, up around 0.27% from the previous close of $93.10. US benchmark West Texas Intermediate (WTI) rose about 0.44% to $90.40 per barrel, compared with $90.03 in the previous session.
Exchange of attacks between the US and Iran continued for a second consecutive day, with Trump warning that Washington would launch additional strikes against Iran unless Tehran immediately accepts a peace deal.
In a statement, the US Central Command (CENTCOM) said American forces struck multiple military targets in Iran from late Wednesday into early Thursday, describing the attacks as an act of “self-defense” following the downing of a US helicopter in the Strait of Hormuz.
CENTCOM also announced that the latest wave of strikes against Iran had concluded.
Iran, meanwhile, launched attacks targeting several US military bases and American allies in the Gulf region. Reports indicated that explosions were heard in Kuwait, Bahrain and Jordan. Tehran also claimed that it had halted all maritime traffic through the Strait of Hormuz, a claim denied by CENTCOM.
Speaking to Fox News on Wednesday evening, Trump said Washington was prepared to carry out much heavier strikes against Tehran if Iran failed to immediately accept a peace agreement. In a separate statement earlier in the day, Trump said Iran had waited too long to engage in negotiations and would face the consequences.
As tensions intensified, oil prices moved higher, raising concerns over potential inflationary pressures. Trump said he welcomed the rise in inflation and claimed that the US had secretly facilitated oil flows through the Strait of Hormuz, enabling shipments totaling 100 million barrels of crude oil.
Over the past two weeks, the US and Iran have exchanged attacks intermittently as tensions escalated across the region. Iran also engaged in reciprocal attacks with Israel on Sunday following Israeli strikes targeting Lebanon and Hezbollah.
Israeli military issued an alert early Thursday, warning that missiles and rockets had been launched from Lebanon.
Escalating conflict has further diminished expectations for a potential peace agreement between the US and Iran, as disputes continue over Tehran’s nuclear program and its control of the Strait of Hormuz.
Meanwhile, data from the US Energy Information Administration (EIA) showed that commercial crude oil inventories fell by 7.2 million barrels to 426.5 million barrels in the week ending June 5, exceeding market expectations for a decline of around 3 million barrels.
