Iran-US Tensions Drive Oil Prices Up for Second Straight Day

Oil prices continued to rise for the second straight day on Thursday, driven by renewed tensions between the United States and Iran. The US military launched a two-hour operation against Iranian targets, including military command centers and drone facilities, in response to Tehran firing ballistic missiles at US forces in the Middle East.

The Strait of Hormuz, which handles around a fifth of global oil flows, remains a focal point for oil markets. Brent futures rose $1.06, or 1.17%, to $91.80 a barrel after touching a low of $89.02 in the session, while US West Texas Intermediate crude gained 39 cents, or 0.46%, to $84.85 a barrel.

Tim Waterer, Chief Market analyst at KCM Trade, said that until safe passage through the Strait of Hormuz is no longer a gamble, the risk premium in oil will not go away. He added that hope for diplomacy is welcome, but the market is pricing the reality of ongoing strikes.