Oil prices moved higher in Asian trading on Thursday as military action and a threatened closure of a key shipping chokepoint intensified market concerns about supply disruptions.
As of 20:01 ET (00:01 GMT), Brent futures for August delivery were up 2.1% at $95.02 per barrel, while West Texas Intermediate crude rose 2.6% to $92.33 per barrel. Both contracts had gained nearly 2% in the previous session.
U.S. forces carried out a fresh round of strikes on Iranian targets overnight, following public comments by U.S. President Donald Trump that Washington would strike Iran "very hard" if negotiations broke down. Iran's military responded by announcing it would close the Strait of Hormuz to all vessel traffic, saying the restriction covered oil tankers and commercial ships and that attempts to transit the waterway would be subject to targeting.
The Strait of Hormuz is described by market participants as one of the world’s most important energy chokepoints, handling a substantial share of seaborne crude exports. The latest U.S. strikes followed an earlier bout of U.S. military action a day prior, when Washington launched strikes in retaliation for the downing of a U.S. Army Apache helicopter near the strait.
Separately, President Trump said the U.S. military has been escorting oil shipments through the Strait of Hormuz, and he stated that more than 100 million barrels have moved through the waterway under U.S. protection. That disclosure underscores the strategic focus on maintaining the route’s openness.
Market fundamentals provided additional support to prices. Data from the U.S. Energy Information Administration showed crude oil inventories fell by 7.2 million barrels in the week ended June 5, a draw considerably larger than analysts’ expectations for roughly a 3 million barrel decline.
Investors are also watching signs that higher energy costs could be feeding broader inflationary pressure. U.S. consumer inflation accelerated to 4.2% in May, a figure that reinforces concerns central banks might keep interest rates higher for longer if inflation proves persistent.
The combination of elevated geopolitical risk around the Strait of Hormuz and a surprise inventory draw has pushed oil benchmarks higher in the near term, with market participants weighing the potential for further supply disruption against macroeconomic and policy considerations.