Shafaq News
Oil prices jumped on Thursday as Tehran declared thecritical energy chokepoint, the Strait of Hormuz, closed after the U.S.launched additional strikes against Iran and as President Donald Trump vowedeven more attacks if no peace deal is secured.
Brent futures rose $1.48, or 1.59%, to $94.58 a barrelas of 0243 GMT, while U.S. West Texas Intermediate (WTI) crude climbed $1.71,or 1.90%, to $91.74. U.S. crude futures gained more than $3 earlier in thesession.
Iran's top joint military command announced the closureof the Strait of Hormuz on Thursday, including oil tankers and commercialships, saying any vessel attempting passage will be shot at.
"It once again suggests a deal is still some wayoff and that energy flows from the Persian Gulf will remain heavilyconstrained," said ING analysts in a note to clients.
The renewed escalation in fighting prompted oil pricesto rally in early morning trading, they said.
On Wednesday, the U.S. military said on X thatcommercial ships continue to transit in and out of the strait.
It also said no U.S. warships have been struck in thestrait, after Iran's state media reported U.S. ships near the waterway weretargeted by missiles and drones.
U.S. forces began launching additional strikes againstmultiple targets in Iran at 5:15 p.m. EDT (21:15 GMT), the latest in anescalating exchange of attacks that threaten to reignite a full-scale war,which was paused in early April when the two sides agreed to a fragileceasefire.
Trump told Fox News reporter Trey Yingst on Wednesdayevening that the strikes would stop shortly but that he would "bomb theshit out of them" if Iran's leaders did not sign an agreement with theU.S. immediately.
Iran's months-long blockade of the strait, whichnormally carries a fifth of global oil and gas shipments, has kept oil priceselevated.
Meanwhile, U.S. crude inventories fell by 7.2 millionbarrels to 426.5 million barrels in the week ended June 5, the EIA said onWednesday, compared with analysts' expectations in a Reuters poll for a 4million-barrel draw.
U.S. crude inventories, including those from strategicreserves, have fallen by 79 million barrels since the Iran war began onFebruary 28, as the top global producer moved to plug supply gaps after thestrait was effectively shut.
Underscoring the squeeze, OPEC output in May slid toits lowest level in over two decades, a Reuters survey showed, as a U.S. navalblockade curbed Iran's exports and Tehran's effective closure of the strategicwaterway slashed shipments from other Gulf producers.
(REUTERS)
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