Crude Oil Prices Increase Following Reports of Iranian-US Airstrike Incident

Oil Prices Jump Over 2% Following Iran's Military Response

Oil prices surged on Thursday after Iran's Revolutionary Guards announced that they had targeted a U.S. airbase in response to a previous U.S. attack in the port city of Bandar Abbas. This significant development led to a substantial increase in oil prices, with Brent crude futures rising by $2.38, or 2.52%, to $96.67 a barrel at 0845 GMT.

The more active August contract also saw a notable gain of $2.45, or 2.66%, to $94.70. Meanwhile, the July contract, which is set to expire on Friday, remained relatively stable. U.S. West Texas Intermediate futures were up $2.24, or 2.53%, at $90.92. These increases come after both benchmarks had slipped more than 5% in the previous session due to speculation about a possible U.S.-Iran deal to end their war and reopen the Strait of Hormuz.

The recent developments in the Middle East have had a significant impact on oil prices. Hours after President Donald Trump rejected a report of a potential compromise deal with Tehran, Iran's Revolutionary Guard announced that they had targeted a U.S. airbase in response to U.S. military strikes on an Iranian drone operation near the Strait of Hormuz. This escalation in tensions has led to increased uncertainty in the oil market.

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According to shipping data from LSEG and Kpler, two supertankers and one liquefied natural gas tanker exited the Strait of Hormuz earlier this week with their transponders switched off, heading for India and China. This development highlights the ongoing risks and challenges associated with shipping oil through the Strait of Hormuz.

In the U.S., crude oil stockpiles fell by 2.8 million barrels last week, marking the sixth consecutive week of declines, according to American Petroleum Institute data. Official inventory data from the U.S. Energy Information Administration are due on Thursday, a day later than usual due to the Memorial Day holiday on Monday.