Oil prices rose more than 3% on Thursday after Iran's Revolutionary Guards said they targeted a US airbase in retaliation for a US attack near Bandar Abbas airport, reports Reuters.
Brent crude futures climbed $3.51, or 3.72%, to $97.8 per barrel by 0344 GMT, while the more active August contract gained $3.35, or 3.63%, to $95.6 per barrel. The July contract is scheduled to expire on Friday.
US West Texas Intermediate crude futures also advanced $3.31, or 3.73%, to $91.99 per barrel.
Both benchmarks had dropped more than 5% in the previous session, touching their lowest levels in a month, amid speculation over a possible US-Iran agreement to end the conflict and reopen the Strait of Hormuz.
Citing Tasnim news agency, the media reported that Iran's Revolutionary Guards said they targeted a US airbase on Thursday following what they described as a US attack near Bandar Abbas airport early in the morning.
They warned that any repeat of what they termed aggression would trigger a “more decisive” response.
Meanwhile, the US military launched fresh strikes in Iran targeting a military site believed to pose a threat to US forces and commercial maritime traffic in the Strait of Hormuz, a US official told the media.
“Oil supply remains constrained, and key sticking points have yet to be resolved,” ANZ commodity strategist Daniel Hynes said in a note.
In the United States, crude oil stockpiles fell by 2.8 million barrels last week, marking the sixth consecutive week of decline, according to data from the American Petroleum Institute.
Official inventory data from the US Energy Information Administration are expected on Thursday, a day later than usual due to the Memorial Day holiday on Monday.
Bd-Pratidin English/ AM
