Oil prices rose on Thursday as investors remained cautious after missile strikes continued between Israel and Iran and U.S. President Donald Trump said he had not decided whether to join the conflict.
Brent crude futures rose $1.60, or 2.1%, to $78.29 a barrel by 1030 ET. U.S. West Texas Intermediate crude for July was up $1.64, or 2.1%, at $78.34. Brent had earlier hit $78.50 on June 13 when Israel launched attacks on Iranian targets.
The fighting entered its seventh day after Israeli airstrikes hit nuclear sites in Iran and Iranian missiles struck an Israeli hospital. Trading volumes were light due to a U.S. federal holiday.
Analysts said a risk premium of around $10 a barrel was now included in oil prices due to reduced Iranian supply and the potential for wider disruption. Even if tensions ease, prices are not expected to return to the low-$60 range seen a month ago.
Trump’s comments on Wednesday added to uncertainty in oil markets. He said he had not yet decided whether the U.S. would support Israel with military action against Iran. The lack of clarity kept markets unsettled.
Analysts also warned that U.S. involvement could lead to attacks on oil infrastructure or tankers, raising the risk of supply disruption. Iran, OPEC’s third-largest producer, currently pumps about 3.3 million barrels of crude oil per day.
Between 18 and 21 million barrels per day of oil and oil products move through the Strait of Hormuz, which lies off Iran’s southern coast. The shipping route remains at risk if the conflict expands.
