Global oil prices experienced a significant rebound, rising almost 4% on Thursday following a sharp decline in the previous session. This increase was driven by fresh US military strikes on Iran, reigniting concerns about potential supply disruptions and ongoing uncertainty surrounding the future of the crucial Strait of Hormuz.
The international benchmark Brent crude saw a 3.83% surge, reaching $97.91 per barrel, while the US benchmark West Texas Intermediate (WTI) also climbed around 4%, trading at nearly $92 per barrel to recover some of the losses from Wednesday.
Recent reports indicated that US forces conducted defensive airstrikes on an Iranian military site, intercepted drones targeting a commercial vessel, and struck a launch unit. These actions come amidst continued tensions between Washington and Tehran regarding the reopening of the vital Strait of Hormuz.
US President Donald Trump expressed dissatisfaction with the ongoing negotiations, dismissing reports suggesting joint oversight of the waterway by Tehran and Oman. Trump emphasized that the strait should remain open to all, with the US closely monitoring the situation. Negotiations, however, face complexities due to disagreements over Iran’s nuclear program and Tehran’s insistence on retaining control over Hormuz, which is subject to restrictions from both sides.
Oil prices had plummeted over 5% on Wednesday to their lowest levels in more than a month as investors awaited clarity on a potential framework agreement to resolve conflicts in West Asia. Brent crude settled at $94.29 per barrel, down 5.31%, while US West Texas Intermediate (WTI) crude closed at $88.68 per barrel, a 5.55% decline. Both benchmarks hit their lowest points in a month during the session, marking their weakest settlements since April 17 and erasing Brent’s gains from the previous day.
