FX.co ★ Oil Rises as US-Iran War Intensifies

WTI crude futures rose nearly 2% to around $76 per barrel on Thursday, extending this week’s gains as tensions between the US and Iran escalated 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 risk 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 transit. Seeking 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 outlined additional measures aimed at stabilizing Gulf markets.