London – Web Desk: Oil prices climbed more than 1% on Thursday as US airstrikes on Iran shattered hopes for a durable ceasefire and raised fresh concerns over the security of the Strait of Hormuz, a critical chokepoint that handles approximately one-fifth of global oil supplies.
Brent crude futures rose 86 cents, or 1.1%, to $78.88 per barrel, while US West Texas Intermediate crude gained 85 cents, or 1.2%, reaching $74.37 per barrel. Both benchmarks had already settled at their highest levels in over two weeks following President Donald Trump’s threats of further military action against Iran.
US Strikes Target Iranian Military Infrastructure
US Central Command confirmed that American forces struck approximately 90 Iranian military targets along the country’s coastline, including air defense systems, coastal surveillance assets, missile and drone storage facilities, naval capabilities, and military logistics infrastructure. The strikes were aimed at ensuring the Strait of Hormuz remains open to commercial shipping.
The military escalation follows Iran’s attacks on US military sites in Bahrain and Kuwait, which Tehran described as retaliation for earlier American strikes on Iranian infrastructure. The exchange of fire has effectively ended a fragile ceasefire agreement reached last month between Washington and Tehran.
Strait of Hormuz Disruption Sparks Supply Fears
Before the outbreak of hostilities on February 28, approximately 20% of global oil and liquefied natural gas supplies transited through the Strait of Hormuz. Iran’s strategic control over this waterway has provided significant leverage throughout the conflict.
“The rush of oil that passed through the strait in recent weeks is over for now,” noted IG analyst Tony Sycamore, adding that shipowners are expected to adopt a more cautious approach to transiting the region.
ING analysts echoed these concerns, stating that “fresh US strikes on Iran pushed oil higher this morning, with the latest escalation undermining confidence in the fragile ceasefire.”
Market Outlook Remains Volatile
Despite the interim peace deal between Washington and Tehran, analysts warn that geopolitical uncertainty will continue to drive price volatility in the near term.
“We believe Iran has every incentive to prolong these discussions, suggesting that the war risk premium in oil prices may not fully dissipate for several months,” said DBS Bank’s head of energy research Suvro Sarkar. “This will lead to continued volatility despite an overall downward price trajectory in the medium term.”
Oil markets remain on edge as investors assess the potential for further escalation and the long-term implications for global energy security.
