Oil prices rise as Iran claims closure of Strait of Hormuz

Oil prices rose in early Thursday trade following Iran’s claim of a closure of the Strait of Hormuz, a move denied by the US amid escalating tensions.

Brent futures climbed 2.5 percent to $95.40 a barrel, while US West Texas Intermediate (WTI) crude jumped nearly 3 percent to $92.63.

Iran announced the closure of the Strait of Hormuz from Thursday, adding that it will attack any vessel that attempts passage.

However, the US Central Command said in a social media post that commercial ships continue to transit in and out of the strait.

US forces began launching new strikes against multiple targets in Iran. The two countries had agreed to a temporary ceasefire in early April.

In a Truth Social post, US President Donald Trump said that more than 100 million barrels of oil have passed through the strait and into the open market.

“More than 200 Commercial Ships have safely travelled through the Strait. This wildly successful effort is because the UNITED STATES of AMERICA CONTROLS the Strait of Hormuz — NOT Iran,” he said.

Further reading:

• Gulf producers plug nearly half pre-war oil output
• More oil tankers cross Hormuz – but many vessels ‘go dark’
• War is transforming how the world views Fujairah

Bahrain and Kuwait sounded alarms on Thursday morning, with air defences engaging hostile aerial targets, Reuters reported.

Kuwait’s civil aviation authority announced the temporary closure of its airspace and the diversion of flights to other airports.

Gold – considered a safe haven during geopolitical uncertainty – fell to a more than six-month low after higher oil prices ignited inflation fears.

Spot gold fell 0.2 percent to $4,063.87 per ounce, as of 00:43 GMT, after hitting its lowest level earlier in the day since November 2021.

Meanwhile, Saudi Arabia’s benchmark index declined 0.9 percent on Wednesday, driven by a fall in Saudi National Bank and Saudi Aramco.

Dubai’s main share index closed 0.5 percent lower, as Emirates NBD and Emaar Properties lost more than 1 percent. However, the Abu Dhabi index edged up 0.2 percent.