𝗢𝗶𝗹 𝗣𝗿𝗶𝗰𝗲𝘀 𝗝𝘂𝗺𝗽 𝗢𝘃𝗲𝗿 𝟮% 𝗮𝘀 𝗜𝗿𝗮𝗻 𝗖𝗹𝗼𝘀𝗲𝘀 𝗦𝘁𝗿𝗮𝗶𝘁 𝗼𝗳 𝗛𝗼𝗿𝗺𝘂𝘇 𝘁𝗼 𝗔𝗹𝗹 𝗩𝗲𝘀𝘀𝗲𝗹𝘀
Global crude benchmarks rose more than 2% on Thursday after Iran announced the Strait of Hormuz is closed to all ships.
Key price moves:
- Brent crude futures climbed $2.30, or 2.47%, to $95.40 a barrel
- US West Texas Intermediate crude added $2.60, or 2.89%, to $92.63
- US crude futures had risen more than $3 earlier in the trading session
Iran's top joint military command declared the waterway closed to all maritime traffic, including oil tankers and commercial ships. The Islamic Revolutionary Guard Corps said the strait would remain shut after new US strikes on Iranian territory.
The IRGC posted on Telegram: "Effective immediately, due to insecurity in the region, the Strait of Hormuz is declared closed to all vessels, including oil tankers and commercial ships." The post added: "Any vessel attempting to transit the strait will be targeted."
US Central Command said it struck multiple targets in Iran in response to continued aggression. President Donald Trump said more attacks were imminent and warned Tehran would pay the price. The strikes came one day after Washington launched attacks following an Army helicopter crash near the strait, which Trump blamed on Iran.
Key context:
- Tensions grew on February 28 after the US and Israel launched joint strikes on Iran
- Iran then shut the strait through a months-long blockade
- The waterway handles about one-fifth of global oil and gas shipments
- The disruption has pushed crude prices past $125 per barrel from $70 earlier
- Iran's UN envoy Amir Saeid Iravani told the UN Security Council Iran does not negotiate under threats
- The US Energy Information Administration said crude stockpiles fell by 7.2 million barrels to 426.5 million barrels in the week ended June 5