US-Iran war: Oil prices climbed around 2% in early trade on Thursday after reports said the United States carried out fresh overnight strikes on an Iranian military facility, heightening geopolitical tensions despite ongoing negotiations between Washington and Tehran aimed at ending their three-month conflict.
Brent crude futures advanced $1.90, or 2.02%, to $96.19 per barrel, while the more actively traded August contract rose $1.64, or 1.78%, to $93.89 per barrel. The July contract is scheduled to expire on Friday. Meanwhile, US West Texas Intermediate crude futures gained $1.73, or 1.95%, to trade at $90.41 per barrel.
In the previous session, both crude benchmarks had fallen more than 5%, hitting their lowest levels in a month, amid hopes that a potential US-Iran agreement could bring an end to the conflict and lead to the reopening of the Strait of Hormuz.
What’s driving crude oil prices today?
President Donald Trump said he was “not satisfied” with the ongoing negotiations, while the White House rejected an Iranian report claiming that Tehran and Oman would jointly oversee the Strait of Hormuz under a proposed draft agreement.
According to a Reuters reporter on X, citing a US official, the US launched fresh strikes in Iran targeting a site considered a threat to American forces and maritime traffic in the strait. Earlier this week, Washington had already conducted attacks on locations near Hormuz.
Despite the escalating tensions, crude oil prices remain on track for a second consecutive weekly decline amid hopes that both sides may still reach at least an interim agreement. However, major sticking points persist, including Iran’s nuclear program and Tehran’s insistence on maintaining control over the Strait of Hormuz, which continues to face a dual blockade by Iran and the US.
Trump further said during a White House meeting that he would not agree to an unfavorable deal and reiterated that the US would not lift sanctions on Iran, conflicting with Tehran’s demands for an end to military attacks and economic relief.
The president is also under pressure from Republican hardliners to continue the conflict, which has now entered its fourth month after breaking out in late February.
(With inputs from agencies)
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
