U.S. strikes in Iran revive Strait of Hormuz turmoil fears
Oil prices increased on Thursday following recent U.S. strikes in Iran, raising concerns about disruptions to commercial shipping through the Strait of Hormuz.
Brent crude futures, the international benchmark, rose by about 3% to $97.16 per barrel, while West Texas Intermediate futures also saw a 3% gain to $91.43 per barrel.
Iran’s Revolutionary Guards reported targeting a U.S. airbase, following fresh strikes by American forces in Iran against a military site believed to threaten U.S. troops and commercial shipping through the Strait of Hormuz.
Citi mentioned in a recent note that oil markets were stabilizing as worst-case supply disruption scenarios were being discounted by investors amid potential progress in U.S.-Iran negotiations.
The bank warned about the uncertainty surrounding the timing of any agreement, which has kept central banks vigilant, considering tighter monetary policies in response to inflation risks driven by energy prices.
Citi also highlighted the impact of rising crude prices on broader inflation pressures, leading some central banks to adopt a more hawkish stance.
