Oil Prices Surge as US-Iran Conflict Escalates
Oil prices jumped sharply during Asian trading on Thursday after the United States and Iran exchanged fresh military strikes, reducing hopes that a peace agreement between the two countries could be reached anytime soon.
Crude oil recovered most of its recent losses after earlier reports had suggested Iran could reopen the Strait of Hormuz within a month, temporarily easing market concerns.
Brent crude futures for July delivery surged 3.8% to $97.83 per barrel by 00:16 ET (04:16 GMT), while U.S. West Texas Intermediate crude futures climbed 4% to $92.26 per barrel.
Iran Confirms Strike on US Base in Kuwait
Iran’s Revolutionary Guard confirmed it had launched attacks on a U.S. airbase in Kuwait in retaliation for American strikes targeting Bandar Abbas earlier in the day.
Separately, Kuwaiti authorities stated that the country was defending itself against missile and drone attacks, although officials did not identify the source of the assaults.
The latest attacks signaled a renewed escalation in direct hostilities between Washington and Tehran despite repeated claims from U.S. officials that a ceasefire remained active.
Earlier this week, the United States also carried out strikes against Iran, describing the military action as an act of “self-defense.”
Trump Downplays Prospects for Peace Agreement
Thursday’s escalation came shortly after U.S. President Donald Trump dismissed reports suggesting Iran would reopen commercial shipping routes through the Strait of Hormuz within one month.
Trump later indicated that he remained unsatisfied with the progress of negotiations involving Iran, further weakening market expectations for a near-term peace deal.
Oil prices had declined sharply on Wednesday and were already under pressure earlier this week as investors increasingly believed a diplomatic breakthrough between the U.S. and Iran was approaching.
However, Trump’s latest comments suggested that negotiations remain far from complete.
Strait of Hormuz Remains Critical Market Concern
Although U.S. officials recently expressed some optimism regarding negotiations with Tehran, both sides continue to disagree over Iran’s nuclear program and control of the Strait of Hormuz.
Recent reports showed that a limited number of ships have continued passing through Hormuz, but shipping volumes remain far below pre-conflict levels.
The ongoing disruption through the strategic waterway continues to affect roughly one-fifth of global oil supplies, keeping energy markets on edge.
Trump also rejected the idea of Iran and Oman jointly controlling the Strait of Hormuz, arguing that no single country should dominate the international shipping route.
