- Global oil prices surged following renewed US military action.
- US, Saudi Arabia struck Iran-backed groups, fueling supply fears.
- Diplomacy hopes, Strait of Hormuz, and supply risks monitored.
Global oil prices moved higher on Thursday after the United States resumed military action against Iran, reviving concerns over crude supplies from the Middle East. However, gains were moderated as investors also weighed the possibility of diplomatic efforts easing tensions and allowing shipping to continue through the Strait of Hormuz.
According to Reuters, Brent crude futures rose $1.48, or 1.63 per cent, to $92.22 a barrel by 12:30 PM. US West Texas Intermediate (WTI) crude also traded higher, gaining 43 cents, or 0.51 per cent, to $84.89 a barrel.
The latest gains followed a sharp rally in the previous session, when both benchmark contracts surged around 7-8 per cent after US President Donald Trump warned Iran it would be hit “very hard” following an Iranian missile strike on a US military base in Jordan.
Renewed Military Action Lifts Oil Market
The market reacted after the US Central Command confirmed that American forces carried out two hours of attacks on Iran beginning at 8:00 p.m. ET on Wednesday (early Asian trading hours on Thursday), according to the report.
The latest strikes marked a resumption of US military operations after a brief pause over the weekend.
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Separately, the United States and Saudi Arabia carried out strikes on Iran-backed paramilitary groups in Iraq on Wednesday. It was the first time Saudi Arabia had publicly joined US air strikes, with the action described as a response to drone attacks launched from Iraq against Saudi oil infrastructure.
The renewed military activity heightened concerns over potential disruptions to oil supplies from one of the world’s most strategically important energy-producing regions.
Supply Risks And Diplomacy In Focus
Despite the geopolitical escalation, analysts said market participants continue to monitor whether tensions will translate into actual disruptions in crude flows.
Vandana Hari, founder of oil market analysis firm Vanda Insights, told Reuters that buying activity increased as European markets responded to reports of the latest US strikes.
Lin Ye, Vice President of Commodity Markets, Oil, at Rystad Energy, said the market had largely factored in President Trump’s warning and was now assessing whether diplomatic developments could limit further escalation.
According to the report, Ye said oil markets have repeatedly reacted sharply to geopolitical headlines, but those gains have often proved temporary unless accompanied by sustained disruptions to physical supply.
Strait Of Hormuz Shipping Under Watch
Attention also remained on shipping activity through the Strait of Hormuz, a critical route for global oil and liquefied natural gas exports.
Iran’s Fars news agency said a Qatari LNG tanker had passed through the Iran-designated shipping route in the Strait of Hormuz with Tehran’s permission.
The vessel, identified as the Al Areesh, had loaded its cargo at Qatar’s Ras Laffan terminal between July 4 and July 6 before sailing through the strait overnight on July 29, according to shipping data from Kpler and LSEG cited by Reuters.
Meanwhile, another development added to concerns over oil supply logistics. Reuters reported, citing Russian news agency Interfax, that the Caspian Pipeline Consortium had suspended oil loadings after a drone attack on a tanker.
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