Oil Prices Soar Amid Strait of Hormuz Uncertainty

Oil prices surged on Thursday, extending their volatile run as traders await developments surrounding the Strait of Hormuz. The main oil contracts rose, with Brent crude adding nearly four percent and the US contract WTI adding nearly three percent.

A potential agreement that bars US and Israeli vessels from entering the Strait has dampened expectations, said John Kilduff of Again Capital. 'This situation is just far from settled and you can only give hope so much of a chance, so the market is taking back some of the optimism about the situation,' he added.

The rebound in oil prices weighed on US equity markets, with the Dow retreating from a record close and the Nasdaq ending flat. US investors are looking ahead to Friday's monthly government jobs report, which may further impact market sentiment.