Crude oil prices moved sharply higher on Thursday as escalating tensions between the United States and Iran reignited fears of major supply disruptions in global energy markets.
Investor sentiment was driven by Iran’s announcement that it had closed the Strait of Hormuz following additional US military strikes, a development that could significantly impact global oil flows.
WTI crude futures for July 2026 traded at US$91.64 per barrel, up US$1.61 or 1.79%, while Brent crude futures for August 2026 stood at US$94.49 per barrel. Earlier in the session, both benchmarks recorded stronger gains as traders reacted to the latest geopolitical developments.
Oil prices received strong support after Iran’s top joint military command declared the closure of the Strait of Hormuz, one of the world’s most important energy transit routes.
Iranian authorities stated that oil tankers and commercial vessels would not be permitted to pass through the waterway and warned that any ship attempting to transit could face military action.
The Strait of Hormuz is a critical chokepoint through which approximately one-fifth of global oil and gas shipments typically pass. Any disruption to traffic through the route has the potential to significantly affect global energy supplies and increase market volatility.
The latest escalation follows additional US military strikes targeting multiple locations in Iran. The attacks mark a further deterioration in relations between the two countries and raise concerns about the possibility of a broader regional conflict.
While Iran claimed that US vessels near the strait had been targeted with missiles and drones, the US military stated that commercial shipping continues to move through the waterway. It also confirmed that no US warships had been struck during the reported incidents.
The renewed exchange of attacks comes after a fragile ceasefire agreed in early April, increasing uncertainty across global commodity markets.
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Market participants remain focused on the impact of Iran’s prolonged blockade of the Strait of Hormuz, which has already contributed to elevated oil prices over recent months.
Continued restrictions on shipping through the route have intensified concerns regarding global crude supply availability.
Traders fear that any further disruption could tighten global supplies at a time when energy demand remains relatively strong, particularly during the northern hemisphere summer season.
Additional support for oil prices came from the latest US inventory data. According to the Energy Information Administration (EIA), US crude stockpiles fell by 7.2 million barrels to 426.5 million barrels during the week ended 5 June. The decline exceeded market expectations of a 4 million-barrel draw.
The larger-than-expected reduction suggests continued demand for crude and highlights the role of US production in helping offset supply disruptions caused by tensions in the Middle East.
Since the conflict with Iran intensified in late February, total US crude inventories, including strategic reserves, have reportedly declined by 79 million barrels as the world's largest oil producer worked to address supply shortages.
WTI crude futures traded within a daily range of US$91.22 to US$93.63 and remain significantly above their 52-week low of US$54.98.
Brent crude futures moved between US$94.10 and US$95.49 during the session, reflecting continued volatility linked to geopolitical developments.
Investors are expected to closely monitor further military activity, shipping conditions in the Strait of Hormuz and inventory data for additional direction in crude oil markets.
Crude oil prices remain firmly supported by escalating geopolitical tensions and ongoing concerns over supply disruptions in the Strait of Hormuz.
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Published on: Jun 11, 2026, 8:09 AM IST
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