Oil prices rose sharply Thursday following the launch of new U.S. military strikes against Iran. The action dashed hopes for an end to the conflict and the full reopening of the Strait of Hormuz, a chokepoint for a fifth of pre-war global oil supply.
Brent crude futures climbed 1% to $78.80 a barrel. U.S. West Texas Intermediate crude rose over 1% to $74.26 a barrel. Both benchmarks surged in post-settlement trade after the strikes began.
The U.S. military stated the strikes aim to keep the critical strait open to traffic. This followed President Donald Trump's declaration that an interim agreement to end the war was "over."
The U.S. said the attacks were a response to Iran's Tuesday assault on three tankers transiting the strait. The U.S. strikes targeted areas along Iran's southern coast.
In response, Iran said it attacked U.S. military sites in Bahrain and Kuwait. The escalation has prompted some war underwriters to advise shipping companies to pause voyages through the strait, with others reviewing policy terms.