Energy prices surge as US-Iran war shuts Hormuz

Energy commodities extended gains on Thursday as the US-Iran war showed no signs of abating, with Brent crude rising above $102 per barrel and European natural gas prices climbing to their highest level since late 2022.

Oil benchmarks advance

Brent futures traded at $102.3 per barrel as of 09:50 GMT, up 1.1% from the previous close, while West Texas Intermediate advanced 1.5% to $97.5. The EU Gas Index surged 2.4% to exceed €81 ($94.2), marking its strongest level since December 2022 as traders priced in supply risks from the ongoing Gulf conflict.

Trump links rally to Iran policy

US President Donald Trump said on Wednesday that current high energy prices are related to Washington's efforts to prevent Iran from obtaining a nuclear weapon. The remarks linked market volatility directly to the administration's strategic objectives as vessel traffic through the Strait of Hormuz has declined significantly since Tehran closed the waterway on August 12.

Maritime chokepoint sealed

The Strait of Hormuz serves as the primary maritime route for crude exports from major Gulf producers, handling roughly one-fifth of global oil shipments. Iran announced the closure on August 12, citing US attacks, and the blockade has since disrupted energy flows at a time when global inventories remain tight.