Oil prices increased on Thursday, with Brent crude futures for September delivery rising 1.03% to $78.82 a barrel and U.S. West Texas Intermediate futures for August climbing 1.06% to $74.29 per barrel. This uptick follows a more than 4% increase on Wednesday, driven by escalating tensions between the U.S. and Iran. The U.S.
Central Command reported that the strikes were a response to Iran's attacks on commercial shipping in the Strait of Hormuz, a critical energy transit route. President Donald Trump indicated a shift in stance, stating he was no longer interested in negotiating with Iran and declared the ceasefire over.
Analysts at Saxo noted that the market is now factoring in the risk of renewed attacks on shipping and a potential breakdown in U.S.-Iran relations, which could hinder the normalization of oil flows through the Strait of Hormuz. Given the strategic importance of this chokepoint, even minor disruptions could significantly affect pricing, freight costs, and overall market sentiment