Global oil prices climbed sharply on Thursday after Iran’s Revolutionary Guards announced they had targeted a U.S. airbase in retaliation for recent American strikes near the strategic Strait of Hormuz.

Brent crude futures rose by $1.75, or 1.86%, to trade at $96.04 per barrel, while the more actively traded August contract gained about 2% to $94.06. U.S. West Texas Intermediate crude also advanced, rising $2.08, or 2.35%, to $90.76 per barrel.

The rebound followed a steep decline in the previous trading session when both benchmarks fell more than 5% to their lowest levels in nearly a month amid hopes of a possible diplomatic breakthrough between Washington and Tehran.

Markets, however, turned volatile again after President Donald Trump dismissed reports suggesting the United States was nearing a compromise agreement with Iran aimed at ending hostilities and easing tensions around the Strait of Hormuz.

Shortly afterward, Iran’s Revolutionary Guard Corps said it had launched strikes targeting a U.S. military base following reported American attacks on an Iranian drone operation near the Strait.

The renewed exchange of military action reignited concerns over the stability of global energy supplies, particularly as the Strait of Hormuz remains one of the world’s most critical oil transit chokepoints.

Analysts say traders are increasingly viewing the military escalation and retaliatory strikes as part of broader geopolitical pressure tactics between both countries, even as hopes for negotiations remain alive.

Shipping activity around the Strait has also drawn attention after tracking data showed that two supertankers and one liquefied natural gas tanker passed through the area earlier this week with their transponders switched off before heading toward India and China.

The developments have heightened fears of potential disruptions to global crude supply, especially as a significant portion of the world’s oil exports passes through the narrow waterway.

Meanwhile, U.S. crude inventories continued to tighten, adding further support to prices. Industry data showed American crude stockpiles fell by 2.8 million barrels last week, marking the sixth consecutive weekly decline.

Market participants are now awaiting official inventory figures from the U.S. Energy Information Administration, which are expected later on Thursday following a delay caused by the Memorial Day holiday earlier in the week.

Investors continue to monitor both diplomatic and military developments closely, with oil markets expected to remain highly sensitive to any further escalation in the Gulf region.