Oil Prices Rise Amid Escalating US-Iran Tensions Over Strait of Hormuz

Oil prices edged higher on Thursday after US President Donald Trump's warning of a 'very strong' response to a drone attack on a US-owned LNG tanker in Egypt. The escalation of tensions between the US and Iran has raised concerns over potential supply disruptions in the Middle East.

The international benchmark Brent crude futures for October traded at $88.89 per barrel, up 0.9% from the previous close of $88.09. West Texas Intermediate (WTI) futures also rose to $84.69 per barrel, a 0.4% increase from the previous session.

The market sentiment was supported by Trump's warning after the drone attack on the US-owned LNG tanker in Egypt. Trump said that 'it's our turn to hit them' and that 'we're going to be hitting them very hard.'

The US Central Command (CENTCOM) launched an 'intense wave of strikes' against Iranian targets in response to attempted missile attacks on US assets in the Middle East.