Oil Prices Rise Amid Escalating Tensions Between the US and Iran

SadaNews Economy - Oil prices rose today, Thursday, after the United States began launching attacks against Iran, reviving fears of a return to comprehensive war in the region.

Just hours after the onset of US strikes, the Supreme Joint Military Command in Iran announced the closure of the Strait of Hormuz to all shipping.

Brent crude prices rose by about 1.05% to $94.08 a barrel.

West Texas Intermediate crude contracts climbed 1.1% to $91.07 a barrel.

Trump stated in a televised address: "We hit them hard yesterday, and we will hit them hard again today," asserting that Iran "will pay the price" for its delay in reaching a peace agreement.

He explained that the US military secretly aided the passage of 200 commercial ships and more than 100 million barrels of oil through the Strait of Hormuz, which prevented prices from exceeding $200 a barrel.

US forces executed strikes against Iranian targets on Tuesday, following the downing of a US Apache helicopter near the Strait of Hormuz. The Central Command confirmed that the operation was "defensive" in response to what it described as "Iranian aggression."

Rystad Energy stated that the suspension of production of 11.8 million barrels per day across six Gulf producers represents the largest supply disruption in market history, noting that cumulative losses have reached a billion barrels, with a warning that each additional month of conflict could wipe out another 350 million barrels.