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WTI crude oil futures climbed above $91 per barrel on Thursday, while Brent crude futures moved toward $97 per barrel. The rebound followed losses in the previous session as traders reacted to a fresh escalation between the United States and Iran. The latest developments weakened expectations for a near-term peace agreement that could end the conflict and reopen the Strait of Hormuz. The waterway remains one of the world's most important energy chokepoints, with roughly one-fifth of global oil supplies typically passing through the strait. Any disruption immediately grabs the attention of energy traders and raises concerns about global supply security.
Military Strikes Escalate US-Iran Tensions
Reports indicated that US forces struck an Iranian military site believed to threaten American troops and commercial shipping routes near the Strait of Hormuz. US forces also reportedly intercepted Iranian drones. Iran responded by claiming that its Revolutionary Guard targeted a US airbase, though officials did not disclose the location. The exchange highlighted how fragile negotiations remain despite ongoing diplomatic efforts. Washington and Tehran continue to disagree on several major issues. Iran wants to maintain influence over the Strait of Hormuz and preserve its nuclear program. The United States remains opposed to both positions.
Trump Warns Oman Over Strait of Hormuz Control Proposals
President Donald Trump issued strong remarks regarding Oman and the future of the Strait of Hormuz. Trump rejected any proposal that would allow regional powers to control shipping through the waterway. He stated that the strait should remain open to everyone and described it as part of international waters. His comments came after reports suggested that Iran and Oman had discussed a mechanism that would allow them to collect tolls from ships passing through the strategic route. Trump also warned that Oman must "behave" or face serious consequences, remarks that quickly drew international attention.
Both Benchmarks Remain on Track for Second Weekly Decline
Despite Thursday's rebound, both Brent and WTI remain on track for a second consecutive weekly decline. Many traders still believe the United States and Iran will eventually reach some form of agreement. Trump has continued to push for a negotiated settlement, though progress remains slow. He recently accused Iran of attempting to delay discussions until after the US midterm elections. Some Republican lawmakers have criticized reports of a potential 60-day truce, arguing that it could undermine military gains achieved during the conflict.
FAQ
What caused WTI and Brent crude prices to rise on Thursday?
WTI crude oil futures climbed above $91 per barrel and Brent crude futures moved toward $97 per barrel following reports of military escalation between the United States and Iran. US forces struck an Iranian military site and intercepted Iranian drones, while Iran claimed its Revolutionary Guard targeted a US airbase.
What did President Trump say about the Strait of Hormuz?
President Donald Trump rejected any proposal that would allow regional powers to control shipping through the Strait of Hormuz. He stated that the strait should remain open to everyone and described it as part of international waters. Trump also warned that Oman must "behave" or face serious consequences after reports suggested Iran and Oman had discussed a mechanism to collect tolls from ships passing through the route.
Why are oil prices still headed for a weekly loss despite Thursday's gains?
Both Brent and WTI remain on track for a second consecutive weekly decline because many traders still believe the United States and Iran will eventually reach some form of agreement. Trump has continued to push for a negotiated settlement, though he recently accused Iran of attempting to delay discussions until after the US midterm elections.
