Oil rises $2 as Iran announces closure of Strait of Hormuz following US strikes

Oil prices ‌climbed more than $2 a barrel Thursday as Iran declared the critical energy chokepoint, the Strait of Hormuz, closed after the US launched additional strikes against Iran.

Brent futures rose $2.30, or ​2.47%, to $95.40 a barrel, while US West Texas Intermediate (WTI) crude climbed $2.60, ​or 2.89%, to $92.63. US crude futures gained more than $3 earlier in ⁠the session.

Iran’s top joint military command announced the closure of the Strait of ​Hormuz on Thursday, including oil tankers and commercial ships, saying any vessel that ​will attempt passage will be shot at.

However, the US military said on X on Wednesday that commercial ships continue to transit in and out of the strait.

It also said no US warships ​have been struck in the strait, after Iran’s state media reported U.S. ships ​near the waterway were targeted by missiles and drones.

US forces began launching additional strikes against multiple ‌targets ⁠in Iran at 5:15 p.m. EDT (21:15 GMT), the latest in an escalating exchange of attacks that threaten to reignite a full-scale war, which was paused in early April when the two sides agreed to a fragile ceasefire.

Iran’s months-long ​blockade of the strait, ​which normally carries ⁠a fifth of the global oil and gas shipments, have kept oil prices elevated.

Meanwhile, US crude inventories fell by 7.2 ​million barrels to 426.5 million barrels in the week ​ended June ⁠5, the EIA said on Wednesday, compared with analysts’ expectations in a Reuters poll for a 4 million-barrel draw.

US crude inventories, including those from strategic reserves, ⁠have ​fallen by 79 million barrels since the Iran ​war began on February 28, as the world’s largest producer stepped into fill supply gaps left ​by the effective closure of the strait.