Crude oil futures advanced on Thursday, settling near their highest level in almost a month, as the prospect of an end to the Middle East conflict grew more distant following President Trump's latest threats to further cripple Iran's economy. Brent crude finished the session below the $94-per-barrel mark, with the new measures announced by the White House signaling that any nation allowing its financial institutions, corporations, airports, or government bodies to assist Iran could face economic penalties from the United States.
This latest effort to isolate the Islamic Republic has cast a fresh shadow over the near-term reopening of the Strait of Hormuz, a critical chokepoint for global energy flows. While Middle Eastern producers continue to move crude out of the Persian Gulf through unconventional routes such as "dark fleet" transshipments, market expectations of a prolonged conflict have once again driven prices higher, also lifting costs for diesel, gasoline, and other refined fuels.
Where to begin
According to Tamas Varga, an analyst at PVM Oil Associates Ltd, "In the current news-driven market environment, Trump's latest comments are pushing oil prices upward."
Adding to the supply concerns, Abdolnaser Hemmati, the governor of Iran's central bank, confirmed in a state television interview on Wednesday that the country's oil exports have effectively ground to a halt amid a sustained US military blockade of Iranian ports.
By Thursday's settlement, West Texas Intermediate crude for September delivery had risen 2.3% to close at $87.83 per barrel, while October WTI futures gained 2.9% to settle at $86.83 per barrel. Brent crude for October delivery advanced 2.4% to settle at $93.78 per barrel.
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