While fighting continues in the Middle East and the US, Israel and other countries are relentless in their attacks on Iran, crude oil prices rose again on Thursday. Both benchmarks finished the day’s trading into the $80s as the Strait of Hormuz remained closed to oil-transporting tankers.
Brent crude, the global standard finished up with a gain of $4.01 or 4.93% per gallon at $85.41 for a fifth session of increases.
West Texas Intermediate, the U.S benchmark, soared nearly 9%, finishing up $6.35 or 8.51% at $81.01. It was WTI’s highest price since July 2024.
Oil prices settled up around 5% on Thursday, extending a rally as the escalating U.S.-Israeli war with Iran disrupted supplies and shipping, driving some major producers in the Middle East to reduce output.
“There is no movement in the Strait of Hormuz so prices will grind higher, and with countries having to shut in production then we will be delayed even longer because it is not like you can just resume production at full strength, that will be a problem for a while,” said John Kilduff, partner at Again Capital, reported Reuters.
The Strait of Hormuz remains closed and hundreds of oil tankers are reported stalled in ports of some of the Middle East countries joining the fight against Iran. As NPR reported, about 20 million barrels of oil per day typically pass through the strait.
Some countries, including the U.S., do have stockpiles, and some producers in the Gulf region can redirect oil away from the strait to other ports. But those changes can’t make up all of the shortfall.
Iraq, a major oil producer, is having to shut down production in some of its largest oil fields because without being able to export it through the Strait of Hormuz, it has nowhere to put that oil.
The news agency Reuters said oil prices were pushed higher by decreased U.S. stocks and at the same time spurred worries about inflation and whether the Federal Reserve might reduce interest rates.
As a direct result of the fighting and increased oil prices, U.S. gasoline and diesel fuel prices climbed again on Thursday. The U.S. average, reported AAA, reached $3.25 per gallon with a 6-cent jump since Wednesday while diesel fuel averaged $4.16 per gallon with a 13 cent gain. Oklahoma gasoline prices averaged $2.79 after a 6 cent one-day gain and diesel fuel averaged $3.67 following an increase of 9 cents in one day.
Natural gas prices managed a more than 2% gain on Thursday, settling at $2.989 MMBtu with an increase of $0.072 or 2.47%.
A majority of Oklahoma energy stocks ended the day with losses while LSB Industries jumped more than 10%.