Oil prices surged over 2% on Thursday following Iran’s Revolutionary Guards’ announcement of an attack on a U.S. airbase in retaliation for a U.S. strike near Bandar Abbas. Brent crude futures rose by $2.34, or 2.48%, reaching $96.63 a barrel, while U.S. West Texas Intermediate futures increased by $2.26, or 2.55%, to $90.94.
Previously, both benchmarks had dipped over 5%, hitting a month-low amid speculation of a potential U.S.-Iran deal to end hostilities and reopen the Strait of Hormuz. The Islamic Revolutionary Guard Corps warned that any further U.S. aggression would elicit a “more decisive” response.
Simon-Peter Massabni from XS.com noted that the rise in oil prices reflects the precarious nature of the ongoing U.S.-Iran standoff. Despite market hopes for resolution, increasing skirmishes and political tensions suggest prolonged conflict, likely keeping the Strait of Hormuz closed.
Additionally, U.S. crude oil stockpiles fell by 2.8 million barrels last week, marking the sixth consecutive week of declines, according to American Petroleum Institute data. Official inventory figures from the U.S. Energy Information Administration are expected later than usual due to the Memorial Day holiday.
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