Oil prices climbed sharply following military actions between Iran and the United States. On Thursday, the Islamic Revolutionary Guard Corps of Iran announced that it had attacked a U.S. airbase in Kuwait, responding to an earlier American strike near the vicinity of Bandar Abbas airport.
As of 11:43 AM (Bangkok time), Brent crude for July delivery increased by $3.91, or 4.15%, reaching $98.20 per barrel, while U.S. West Texas Intermediate futures gained $3.67, or 4.14%, to $92.35.
This rebound followed a more than 5% drop in oil prices in the prior session, which had been driven by expectations that a potential deal between the U.S. and Iran could end hostilities and allow for the reopening of the Strait of Hormuz.
Iran’s state media Tasnim noted that the Revolutionary Guard targeted the U.S. base in response to what they called an early-morning U.S. attack near Bandar Abbas airport, cautioning that further such incidents would meet with a firmer response.
Earlier, a U.S. official said that American forces had launched additional strikes on Iranian military infrastructure they assessed as a threat to both U.S. personnel and commercial shipping in the Strait of Hormuz.
For Kuwait, the country’s military reported that it had deployed air defenses due to perceived threats from missiles and drones, with explosions heard resulting from attack interceptions.
The escalation in the region coincided with the U.S. Treasury Department imposing new sanctions on Iran’s Persian Gulf Strait Authority, which oversees vessel traffic through the Strait of Hormuz. The department warned that cooperation with this agency could expose entities to additional U.S. sanctions due to the Authority’s ties with the Revolutionary Guard.
Despite this backdrop of rising tensions, U.S. Secretary of State Marco Rubio emphasized, prior to the latest development, that diplomatic efforts with Iran are ongoing and have shown progress, while cautioning that other options remain under consideration if talks do not yield results.
