Oil prices climbed sharply on Thursday, reaching their highest levels in nearly a month as renewed tensions between the United States and Iran increased concerns over global energy supplies.
The latest gains followed warnings from U.S. President Donald Trump that Washington plans to impose tougher economic measures on Iran while the two sides remain locked in a dispute over the Strait of Hormuz.
Brent and WTI Extend Their Rally
Benchmark Brent crude futures rose 2.2% to $93.66 per barrel by 09:16 ET, while U.S. West Texas Intermediate crude gained 2.5% to $87.99 per barrel.
Both contracts reached their strongest levels since July 24 after recording five consecutive sessions of gains.
The rally reflects growing concern that the Hormuz dispute could continue for an extended period and keep significant volumes of global energy supplies at risk.
Trump Threatens Tougher Sanctions on Iran
Trump said Washington is preparing a significantly more aggressive economic campaign against Tehran.
Although he did not provide specific details about the measures, the U.S. president called on American allies to participate and warned that companies or countries continuing to conduct business with Iran could also face economic consequences.
ING analysts said the comments appeared to indicate a further escalation in Washington’s attempts to economically isolate Iran.
Iranian Oil Already Faces Heavy Restrictions
Iran is already subject to extensive U.S. sanctions targeting its oil exports.
Washington has also maintained restrictions around Iranian ports as part of its broader pressure campaign against Tehran.
Iran, meanwhile, has responded to the conflict by severely limiting access through the Strait of Hormuz.
The waterway is critical to global energy markets because roughly 20% of worldwide oil and liquefied natural gas supplies normally pass through the route.
Strait of Hormuz Traffic Remains Severely Disrupted
Recent shipping data indicates that commercial traffic through the Strait of Hormuz remains only a fraction of the levels recorded before the conflict.
The slowdown has continued despite repeated statements from U.S. officials that the waterway remains open to tanker traffic.
Any prolonged disruption could tighten global energy supplies and keep upward pressure on crude oil prices.
Trump Says Negotiations Could Resume
Trump said Wednesday that the United States maintains control of the strategically important waterway.
He also suggested that negotiations with Iran could resume at some stage.
However, Tehran has disputed claims that meaningful talks are currently taking place.
Iran Demands Compliance With Previous Agreement
Iran has said Washington must first comply with the conditions of an interim peace framework agreed in June before further progress can be made toward reopening the Strait of Hormuz.
The Memorandum of Understanding expired earlier this week.
So far, neither Washington nor Tehran has provided strong indications that the agreement will be renewed.
Oil Markets Face Continued Geopolitical Risk
The continued deadlock leaves energy markets exposed to further volatility.
Any escalation involving Iranian sanctions, shipping restrictions or military activity around the Strait of Hormuz could push oil prices higher.
For now, traders are closely monitoring developments between Washington and Tehran as Brent and WTI remain near multi-week highs.
