Oil prices climb sharply as Iran announces closure of Strait of Hormuz
Why this matters: local context for readers following news across Pakistan and the region.
Global oil prices moved sharply higher on Thursday after Iran announced the closure of the Strait of Hormuz following additional US strikes against Iranian targets. The development added to concerns over potential disruptions to energy supplies through one of the world’s most important oil transit routes. Market sentiment was further influenced by statements from US President Donald Trump, who warned that additional military action could follow if a peace agreement is not reached. Brent crude futures rose by $1.48, or 1.59%, to reach $94.58 per barrel during early trading. Meanwhile, U.S. West Texas Intermediate (WTI) crude gained $1.71, or 1.90%, to trade at $91.74 per barrel. Earlier in the session, US crude futures had climbed by more than $3, reflecting heightened concerns among traders over the growing tensions and their potential impact on global energy markets. Iran has announced the closure of the Strait of Hormuz as exchange of strikes with the US entered second day, growing military tensions in the region. According to a statement attributed to Iran’s senior joint military command, all maritime traffic through the strategic waterway has been suspended. Iranian authorities warned that any vessel attempting to pass through the Strait of Hormuz could be targeted. The reported restrictions apply to both commercial and oil-carrying ships. Iranian media reported that two vessels were struck after allegedly violating the newly announced restrictions. The reports also stated that clashes had broken out between US forces and Iran’s Islamic Revolutionary Guard Corps near the Strait of Hormuz following recent American military actions. Reports claimed that Iranian armed forces targeted US naval vessels operating near the waterway with missile and drone attacks. Reports also described explosions in several locations across Iran, including parts of Fars Province, western Tehran, Bandar Abbas, Minab, Sirik, Qeshm, Hengam, Kish Island, and the port city