US-Iran war: Oil prices climbed on Thursday after the US carried out fresh strikes on Iran, reducing hopes of a swift end to the conflict and delaying expectations of the full reopening of the Strait of Hormuz, a key route that handled around one-fifth of global oil supplies before the war.
Brent crude futures were up 78 cents, or 1%, at $78.80 a barrel, while US West Texas Intermediate (WTI) crude gained 74 cents, or 1.01%, to trade at $74.26 a barrel.
Both Brent and WTI had already surged by more than $1 in after-hours trading on Wednesday following reports that the US military had launched a new wave of strikes against Iran.
What's driving crude oil prices?
Earlier, the benchmark indices had ended at their highest level in more than two weeks after US President Donald Trump warned of fresh military strikes on Iran as early as Wednesday night.
The US military later confirmed it had launched another round of attacks targeting Iran, saying the operation was aimed at ensuring the strategic Strait of Hormuz remained open for maritime traffic. The strikes came hours after Trump announced that an interim agreement to end the conflict was "over."
According to the US, the latest military action was a response to Tuesday's attacks on three tankers passing through the Strait of Hormuz. The strikes triggered disruptions across several cities along Iran's southern coast, with power outages reported in some areas.
Iran, in turn, said on Wednesday that it had targeted US military installations in Bahrain and Kuwait in retaliation for earlier American strikes on key infrastructure.
Meanwhile, insurance industry sources were quoted as saying by Reuters that several war-risk insurers have advised shipping companies to temporarily halt voyages through the Strait of Hormuz, while others are reassessing their coverage terms following Iran's renewed attacks on commercial vessels.
(With inputs from Reuters)
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
