Oil prices advanced for a fourth straight session on Thursday amid an escalation of U.S. military operations against Iranian forces, reinforcing concerns that shipping through the Strait of Hormuz could face ongoing disruptions.
As of 21:18 ET (01:18 GMT), Brent futures for September delivery were trading up 0.7% at $85.52 per barrel. West Texas Intermediate crude front-month futures rose 0.9% to $80.32 per barrel. Both benchmarks were on track for their fourth day of gains following an early-week surge that pushed prices nearly 10% to one-month highs after the conflict with Iran flared again.
Market attention has remained focused on the security of the Strait of Hormuz, a chokepoint through which roughly one-fifth of global oil and liquefied natural gas shipments normally transit. The possibility of prolonged interference with flows through the strait is a central driver of the recent price rally.
The latest price uptick followed a fresh round of U.S. strikes on Wednesday targeting Iranian military installations that Washington says were linked to attacks on commercial vessels. Officials described the operation as intended to degrade Iran’s ability to threaten maritime traffic in the Gulf.
Iranian officials responded by saying they were engaged in an "existential war" with the U.S., and warned that further hostilities could produce additional disruption to regional energy exports if the conflict continues.
The escalation has largely undone the cautious optimism that emerged after a temporary easing of tensions last month. That earlier improvement had supported expectations of more stable flows, but the renewed clashes have clouded that outlook.
Fundamentals also offered support to prices. The U.S. Energy Information Administration reported on Wednesday that crude oil inventories declined by 1.7 million barrels in the week ended July 10, a move broadly in line with market expectations. Gasoline stockpiles fell by 1.5 million barrels amid firm peak summer driving demand, while distillate inventories unexpectedly increased by 4.6 million barrels.
In its July Oil Market Report, the International Energy Agency noted that although oil flows through the Strait had partially recovered in June, the renewed hostilities this month have clouded the outlook and could derail expectations for a return to surplus in 2027.
Context and market implications
The combination of heightened geopolitical risk around the Strait of Hormuz and inventory draws has tightened market sentiment, supporting crude prices. Participants remain attentive to any further military actions and subsequent Iranian responses that could affect shipping and regional exports.