Brent crude futures rose more than 1% to trade above $82 per barrel on Thursday, extending this week’s rally as tensions between the United States and Iran intensified following reports that a US submarine sank an Iranian warship off the coast of Sri Lanka. US Defense Secretary Pete Hegseth characterized the strike as “the first such attack on an enemy since World War II.”
The broader US-Israeli campaign against Iran has now entered its sixth day, keeping markets on edge over the prospect of further escalation and a protracted conflict. The crisis has effectively halted commercial shipping through the Strait of Hormuz, after the IRGC warned it would “set ablaze” any vessel attempting to pass through the waterway.
In an effort to contain a wider energy shock, President Donald Trump offered risk insurance and naval escorts for commercial vessels operating in the Persian Gulf, while Treasury Secretary Scott Bessent announced additional measures intended to stabilize markets across the Gulf region.
