Oil Extends Gains as US Strikes Continue

Crude oil climbed above $74 per barrel on Thursday, rallying for the third straight session after the US military confirmed it had carried out strikes on Iran for a second straight day, intensifying tensions and fueling concerns over energy supplies from the Middle East. The US said the attacks were intended to reduce Iran’s ability to threaten navigation through the Strait of Hormuz, while Tehran vowed a large-scale retaliatory campaign against US military bases across the region. President Donald Trump declared that, in his view, the ceasefire is over and warned of additional military action against Iran, including a new blockade. He also cautioned that oil prices could climb further and said future strikes may target Iran’s key export terminal on Kharg Island. The renewed hostilities have heightened fears that the collapse of the interim US-Iran peace agreement could once again disrupt global oil supplies, with the Strait of Hormuz remaining at the center of the conflict.

Crude oil prices surged as much as 7% at $75.6 a barrel on Wednesday as escalating tensions in the Middle East fueled concerns over further supply disruptions. President Trump said that as far as he is concerned, the ceasefire is over and threatened additional strikes on Iran and a new blockade. Yesterday, the US revoked a waiver that had allowed Iran to sell crude, following attacks on vessels transiting Hormuz. The actions followed a series of recent attacks on vessels transiting the Strait of Hormuz. Tehran also said it had targeted 85 US military sites in Bahrain and Kuwait in response to what it described as US violations of the ceasefire. The renewed conflict raised the prospect of fresh disruptions to global energy supplies by deterring shipowners and regional producers from using the vital waterway. The escalation marks a sharp reversal from earlier expectations of a supply glut, after OPEC+ increased production quotas and Middle Eastern producers moved to ramp up output.

Crude oil prices surged 5% to $74 a barrel on Wednesday as escalating tensions in the Middle East fueled concerns over further supply disruptions. President Trump said that as far as he is concerned, the ceasefire is over while the US launched strikes on Iran and revoked a waiver that had allowed the country to sell crude. The actions followed a series of recent attacks on vessels transiting the Strait of Hormuz, including a Qatari LNG carrier and a Saudi oil tanker. Tehran also said it had targeted 85 US military sites in Bahrain and Kuwait in response to what it described as US violations of the ceasefire. The renewed conflict raised the prospect of fresh disruptions to global energy supplies by deterring shipowners and regional producers from using the vital waterway. The escalation marks a sharp reversal from earlier expectations of a supply glut, after OPEC+ increased production quotas and Middle Eastern producers moved to ramp up output.