Oil prices climbed more than one percent on Thursday after fresh U.S. military strikes on Iran renewed concerns over the Middle East conflict. The escalation weakened hopes for a lasting ceasefire and raised fears of disruptions in the Strait of Hormuz. Energy markets, global shipping, and oil-importing countries are expected to feel the impact.
Brent crude futures rose 86 cents, or 1.1 percent, to $78.88 per barrel. U.S. West Texas Intermediate crude gained 85 cents, or 1.2 percent, to $74.37 per barrel. Both benchmarks had already surged after the United States launched strikes on nearly 90 Iranian military targets along the country’s coastline.
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According to U.S. Central Command, the operation targeted air defence systems, coastal surveillance assets, missile and drone storage sites, and naval infrastructure. Washington said the strikes aimed to keep the Strait of Hormuz open for international shipping. However, analysts said the renewed military action has shattered confidence in an already fragile ceasefire.
The latest escalation has also affected maritime trade through the Strait of Hormuz, which carries around one-fifth of global oil supplies. Shipping companies and insurers have become more cautious as security risks increase. Iran has previously threatened to disrupt traffic through the strategic waterway, making energy markets highly sensitive to developments.
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Market analysts expect oil prices to remain volatile as geopolitical tensions continue. They say prolonged uncertainty in the Middle East could keep a risk premium in crude prices despite broader economic pressures. Investors are closely monitoring military developments and diplomatic efforts that could determine the next direction of global energy markets.