Oil prices moved higher for a second consecutive day on Thursday as renewed military action between the United States and Iran heightened concerns over crude exports moving through critical global shipping routes.
Brent crude futures rose $1.06, or 1.17%, to $91.80 a barrel by 0812 GMT after earlier falling to an intraday low of $89.02.
U.S. West Texas Intermediate (WTI) crude climbed 39 cents, or 0.46%, to $84.85 a barrel after touching a session low of $83.21.
Renewed Military Action Supports Oil Prices
Energy markets remained focused on developments in the Middle East after the U.S. military confirmed strikes on dozens of Islamic Revolutionary Guard Corps facilities across Iran, including command centres and drone sites. The operation followed ballistic missile attacks launched by Tehran against U.S. forces stationed in the region.
U.S. Central Command (CENTCOM) said the operation began at 0000 GMT and concluded at 0200 GMT on Thursday.
“Until safe passage through the Strait of Hormuz is no longer a gamble, the risk premium in oil is not going anywhere — hope for diplomacy is welcome, but the market is pricing the reality of ongoing strikes,” said Tim Waterer, chief market analyst at KCM Trade.
Markets Monitor Key Shipping Routes
The Strait of Hormuz, through which around 20% of the world’s oil and natural gas supplies typically pass, has remained a major focus for traders since fighting erupted on February 28.
On Wednesday, the United States and Saudi Arabia carried out strikes against Iran-backed paramilitary groups in Iraq. The action marked the first publicly acknowledged Saudi participation in U.S. air operations and followed drone attacks on Saudi energy facilities launched from Iraq.
Despite the military escalation, analysts said investors remain focused on whether oil shipments continue to move through the region and whether diplomatic efforts could reduce tensions.
Iran’s Fars news agency reported that a Qatari LNG tanker successfully sailed through the Iranian-designated route in the Strait of Hormuz after receiving approval from Iranian authorities.
According to shipping data from Kpler and LSEG, the Al Areesh tanker, which loaded cargo at Qatar’s Ras Laffan terminal between July 4 and July 6, exited the strait overnight on July 29.
Supply Concerns Extend Beyond Hormuz
The conflict has also disrupted shipping through the Bab el-Mandeb Strait, adding another area of concern for global energy markets.
Regional sources told Reuters that Yemen’s Houthi movement is considering charging commercial vessels using the southern Red Sea, one week after announcing a naval blockade targeting Saudi Arabia.
“For Brent to break convincingly above recent highs and sustain a move higher, we would need clearer evidence of prolonged physical disruption — either a sustained reduction in flows through Hormuz or confirmed damage to key energy infrastructure,” Waterer added.
Adding to supply concerns, the Caspian Pipeline Consortium said, according to Russia’s Interfax news agency, that it had suspended oil loading operations after a drone attack involving a tanker.
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