Oil prices rose for a second day on Thursday as renewed attacks between the United States and Iran disrupted oil flows through key shipping routes.
Brent futures rose $1.06, or 1.17%, to $91.80 a barrel after touching a low of $89.02 in the session.
United States (US) West Texas Intermediate (WTI) crude gained 39 cents, or 0.46%, to $84.85 a barrel after hitting a session low of $83.21.
Geopolitical tensions continued to simmer after the US military said it had hit dozens of Revolutionary Guard Corps targets in Iran, including military command centres and drone facilities, in a two-hour operation launched after Tehran fired ballistic missiles at US forces in the Middle East.
“Until safe passage through the Strait of Hormuz is no longer a gamble, the risk premium in oil is not going anywhere, hope for diplomacy is welcome, but the market is pricing the reality of ongoing strikes,” said Tim Waterer, Chief Market analyst at KCM Trade.
The Strait of Hormuz, which normally handles around a fifth of global oil and gas flows, has remained a focal point for oil markets since the conflict began on February 28.
–Reuters–
