Global oil prices surged on Thursday after fresh US military strikes on Iran heightened fears of a wider conflict in the Middle East, while Tehran claimed it had shut the strategically vital Strait of Hormuz, a key route for global energy supplies.
Brent crude futures rose 1.6 per cent to $94.57 a barrel, while US West Texas Intermediate (WTI) crude climbed nearly 1.9 per cent to $91.74 a barrel. Earlier in the session, US crude prices had jumped by more than $3 as traders reacted to the rapidly escalating situation.
The latest gains came after the United States launched another round of attacks on Iranian military targets. According to the US Central Command (CENTCOM), the operation targeted military surveillance systems, communications infrastructure and air defence sites across Iran. The strikes reportedly concluded around four hours after they began shortly after midnight in Tehran.
The military action followed a warning from US President Donald Trump, who said Washington was prepared to strike Iran forcefully if it rejected a peace proposal put forward by American negotiators.
Adding to market concerns, Iran’s top joint military command announced that the Strait of Hormuz had been closed to all maritime traffic, including oil tankers and commercial vessels. Iranian officials reportedly warned that any ship attempting to pass through the waterway could come under attack.
The Strait of Hormuz is one of the world’s most important energy corridors, carrying a significant share of global oil exports. Any disruption to traffic through the passage is closely watched by energy markets because of its potential impact on global fuel supplies.
| Futures & Indexes | Last | Change |
|---|---|---|
| WTI Crude | 91.93 | +1.90 |
| Brent Crude | 94.75 | +1.65 |
| Murban Crude | 89.99 | +1.75 |
| Natural Gas | 3.191 | +0.006 |
| Gasoline | 3.139 | +0.029 |
| Heating Oil | 3.670 | +0.057 |
| WTI Midland | 92.82 | +2.37 |
| Mars | 104.49 | -5.55 |
| Opec Basket | 98.92 | -3.60 |
| DME Oman | 88.66 | -3.78 |
| Mexican Basket | 86.51 | -1.81 |
| Indian Basket | 92.55 | -4.64 |
| Urals | 83.05 | -4.70 |
| Western Canadian Select | 75.85 | -3.10 |
| AECO C natural gas | 1.260 | -0.040 |
| Dubai | 89.39 | -1.78 |
| Brent Weighted Average | 91.75 | -4.11 |
| Louisiana Light | 97.62 | +0.80 |
| Domestic Swt. @ Cushing | 84.68 | -3.10 |
| Giddings | 78.43 | -3.10 |
| ANS West Coast | 103.97 | +0.88 |
| Gulf Coast HSFO | 82.75 | -2.03 |
| Ethanol | 1.895 | -0.015 |
| Dutch TTF Natural Gas | 16.55 | -0.34 |
| LNG Japan/Korea Marker | 18.89 | -0.01 |
However, the Iranian claim was quickly disputed by the United States. CENTCOM said commercial vessels continued to move through the strait and that shipping operations had not been halted despite the heightened military tensions.
The conflicting accounts added further uncertainty to global markets already rattled by the exchange of military strikes between Washington and Tehran.
Several energy benchmarks posted gains amid concerns over potential supply disruptions. Murban crude rose almost 2 per cent to $89.99 a barrel, while gasoline and heating oil futures also advanced. The rise in oil prices reflects growing fears that continued hostilities could affect production and transportation routes across the region.
Analysts warned that markets are likely to remain volatile as investors closely monitor developments in the Middle East. Any confirmed disruption to shipping through the Strait of Hormuz could trigger a further spike in crude prices and add fresh pressure on global energy markets.