Crude oil prices have continued their upward trend, climbing further on Thursday as the US and Iran exchanged fresh military strikes, causing disruption in the Strait of Hormuz. Investors remained focused on the possibility of prolonged disruptions to key energy shipping routes in the Middle East.
On Thursday, Brent crude futures rose 33 cents, or 0.4 per cent, to US$85.28 per barrel, while US West Texas Intermediate (WTI) crude gained 42 cents, or 0.5 per cent, to US$80.02 per barrel. Investor sentiment also strengthened after the US military carried out a new wave of strikes on Iranian coastal defence and cruise missile sites.
Iran, on the other hand, warned that it could restrict energy exports, describing the conflict as an "existential war" with the United States. The fresh escalations have raised fears among oil trading companies that attacks in the Strait of Hormuz could dwindle a key maritime route handling one-fifth of global trade.
According to market analysts, crude oil prices could continue rising if geopolitical tensions intensify, while easing hostilities may lead to a correction in prices later this year. The US Energy Information Administration on Wednesday reported a decline of 1.7 million barrels during the week ended July 10 in inventories, though it was lower than the expected 2.6 million-barrel decline amid a decrease in demand and global cues.
Crude oil prices recorded their highest monthly gain in 2026 after climbing over 10-12 per cent in the past ten days alone. In one of the previous sessions recorded on Tuesday, Brent had surged 9.6 per cent, marking its biggest single-day jump since May 2020.
Oil prices, which had gone down nearly 30 per cent in the second quarter, have recovered as the escalating conflict has renewed concerns over crude supplies from the Persian Gulf.
During a brief pause between two US naval blockades, Iran exported at least 57 million barrels of crude oil.
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