Oil prices move higher as Iran threatens response to latest U.S. strikes
Bazilfoto | Istock | Getty Images
Oil prices rose on Thursday after the United States launched a “heavy wave” of attacks against Iran in retaliation for missile strikes on American forces in the region late Wednesday, dashing hopes of reducing tensions.
In response, Iran’s Islamic Revolutionary Guard Corps threatened to further escalate tensions.
Brent crude oil International benchmark futures rose 1.5% to $92.10 per barrel. WE West Texas Intermediate Futures rose 0.9% to $85.23 per barrel.
The resumption of strikes marks the latest turn in the conflict, which has hit oil markets and disrupted shipping in the Strait of Hormuz since fighting began in late February. The United States halted two weeks of fire on Iranian targets last weekend as diplomats tried to give “space” to peace talks.
However, Trump telegraphed the retaliation hours ago and warned Iran to order a heavy attack. “We’re going to hit them hard. They’re going to get beat up,” Trump told a Fox News reporter early Wednesday.
U.S. Central Command described the operation as a “strong response” to Iran’s attempted attack on U.S. forces in the Middle East on Tuesday.
In the two-hour strikes, the United States hit dozens of Islamic Revolutionary Guard Corps targets across Iran, including military command centers, missile and drone facilities, coastal surveillance and defense facilities, and maritime capabilities, Centcom said.
Investors are eagerly awaiting Sunday’s OPEC+ meeting, where the oil producers group is expected to announce a 188,000-barrel-per-day supply increase for September.
“The biggest uncertainty through 2027 will be around the group’s policy, with the potential for pushback on production quotas,” ING strategists wrote in a note on Wednesday.
— CNBC’s Anniek Bao and Sam Meredith also contributed to this report.
