Oil prices climbed for a fourth consecutive session on Thursday as escalating military action between the United States and Iran kept traders focused on the risk of supply disruptions through the Strait of Hormuz, one of the world's most important energy corridors.
Global benchmark Brent crude traded near $85 a barrel, after rallying about 12% over the previous three sessions, while West Texas Intermediate (WTI) hovered around $80 a barrel.
The latest gains came after the United States launched another round of airstrikes on Iran, saying it had also disabled an unladen oil tanker headed for an Iranian port. The renewed military action has reinforced fears that tensions in the region could further disrupt the movement of crude from the Middle East.
Markets are also reacting to increasingly hawkish rhetoric from U.S. President Donald Trump, who has pledged to continue military operations until Iran stops attacking commercial vessels in the Strait of Hormuz and agrees to reopen the strategic waterway. According to The Wall Street Journal, Trump is also considering expanding military operations, including discussions around Iran's Kharg Island, the country's main oil export terminal.
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Tehran, however, has shown little sign of backing down. Iran's Islamic Revolutionary Guard Corps said the Strait of Hormuz would remain closed until the U.S. ends its military strikes and lifts its blockade of Iranian ports.
The Strait of Hormuz carries roughly one-fifth of global oil and liquefied natural gas supplies, making any disruption a major concern for energy markets.
Recent attacks have also threatened an alternative export mechanism known as "shuttle runs," where crude is transferred from tankers inside the Gulf to larger vessels outside the Strait. The system has become an important route for exporters such as the United Arab Emirates, although analysts say continued attacks could undermine its effectiveness.
Despite the heightened tensions, shipping has not come to a complete standstill. U.S. Central Command said nearly half of the roughly 300 vessels that transited the Strait over the past week were assisted by American forces, helping keep crude flows moving.
Adding to bullish sentiment, data from the U.S. Energy Information Administration showed U.S. crude inventories fell by nearly 1.7 million barrels last week as exports increased, pointing to resilient demand even as geopolitical risks dominate market sentiment.
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