Oil prices climbed on Thursday following a sharp escalation in rhetoric from the White House regarding the Strait of Hormuz. U.S. President Donald Trump warned that any attacks on commercial shipping transiting the critical waterway would be met with direct military strikes on Iranian infrastructure.
The threat marks a significant hardening of the U.S. stance, reversing the diplomatic momentum that had previously calmed investor nerves over supply disruptions in the region.
Brent crude futures advanced in the session, extending gains as traders repriced the probability of a physical disruption to global oil flows.
The move comes after a period of relative stability in energy markets, where prices had softened following reports of advancing peace talks between Washington and Tehran.
The latest comments from the U.S. president have effectively reset the risk premium, with investors now weighing the potential for renewed conflict against the backdrop of ongoing diplomatic efforts.
The Strait of Hormuz remains a focal point for global energy security, handling a significant portion of the world's seaborne oil trade.