Oil prices jump 2% after Iran says it targeted U.S. airbase following fresh American strikes

Oil prices rose Thursday after fresh U.S. strikes in Iran renewed concerns over disruptions to commercial shipping through the Strait of Hormuz.

Brent crude futures, the international benchmark, climbed about 2% to $96.28 per barrel by 8:42 a.m. ET. West Texas Intermediate futures also gained about 2%, to $90.75 per barrel.

Iran’s Revolutionary Guard said Thursday that it targeted a U.S. airbase at around 4:50 a.m. local time, according to the Islamic Republic’s Tasnim news agency. The IRGC did not specify the location of the airbase.

The announcement came after American forces launched fresh strikes in Iran against a military site believed to threaten U.S. troops and commercial shipping through the Strait of Hormuz, a U.S. official told MS NOW. Several Iranian drones were also reportedly intercepted and downed.

Oil prices have tumbled more than 10% since May 18 when President Donald Trump said he called off an imminent wave of military strikes against Iran to allow more time for negotiations.

Secretary of State Marco Rubio said Wednesday that the talks have made some progress. Rubio said Trump prefers diplomacy and will give talks with Iran “every chance to succeed.”

The U.S. and Iran have been locked in a stalemate over the Strait of Hormuz since agreeing to a fragile ceasefire in April.