Oil prices jumped more than 3% on Thursday. Iran's Islamic Revolutionary Guard Corps (IRGC) targeted a U.S. airbase in a direct retaliatory strike. This attack followed American strikes on an Iranian drone ground control station near Bandar Abbas.
U.S. officials characterized their military action as a defensive measure to protect forces and shipping in the Strait of Hormuz. The IRGC warned it would deliver a more decisive response to any further U.S. actions. The escalation jeopardizes a fragile ceasefire and dampens hopes for a diplomatic resolution.
Brent crude futures rose to nearly $98 a barrel. West Texas Intermediate (WTI) climbed above $91. These gains reversed a sharp decline from the previous day when markets remained optimistic about a potential peace deal.