Oil rises after Iran and US trade airstrikes

Oil prices rose more than 2% on Thursday after fresh U.S.-Iran military exchanges reignited fears of disruption to shipping through the Strait of Hormuz, one of the world’s most important energy routes.

Reuters reported that Iran’s Revolutionary Guards said they targeted a U.S. airbase in response to a U.S. attack near Bandar Abbas. AP also reported that oil gained more than $2 after the U.S. strikes on Iran.

The moves came as traders assessed the risk that escalating conflict could threaten commercial traffic through the Strait of Hormuz, a narrow waterway through which a significant share of global oil shipments passes.

U.S. Central Command has previously said it intercepted Iranian attacks and carried out self-defense strikes while transiting the Strait of Hormuz. CENTCOM also said in April that it would begin a blockade of ships entering or exiting Iranian ports, underlining the tense maritime backdrop.

The latest reports did not confirm any direct disruption to oil flows, but they added to concern that the confrontation could spill further into shipping lanes and keep energy markets volatile.

Investors are now watching for whether either side confirms additional strikes or retaliation, and whether the threat environment around the Strait of Hormuz intensifies further.