Published On 11/6/2026
Iran’s announcement of the closure of the Strait of Hormuz to oil tankers and commercial ships, following new US raids targeting sites inside the country, led to a rise in global oil prices and an increased state of anticipation in currency markets, amid fears of a widening circle of confrontation and its impact on global energy supplies.
Brent crude futures rose $2.30, or 2.47%, to $95.40 per barrel, before falling to $93.3 per barrel by 06:30 GMT.
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US West Texas Intermediate crude rose to $92.63 per barrel, and its gains exceeded $3 during early trading, before falling to $90.46 per barrel.
The Khatam al-Anbia military headquarters in Iran announced the closure of the Strait of Hormuz, stressing that “any ship trying to pass will be exposed to fire.” But the US military said that commercial ships still continued to cross the strait, denying that any of its naval vessels had been targeted, despite Iranian media reports that spoke of the bombing of American ships with missiles and drones near the waterway.
This comes after US forces began, on Wednesday evening, launching additional raids on multiple targets inside Iran, in the latest escalation between the two sides since the collapse of the fragile ceasefire that had entered into force at the beginning of last April.
In the United States, oil inventory data supported the upward trend in prices, as US Energy Information Administration data showed a decline in crude inventories by 7.2 million barrels during the week ending June 5, to 426.5 million barrels, exceeding analysts’ expectations of a decline of only 4 million barrels.
The data also indicated a decline in total US oil stocks, including the strategic reserve, by about 79 million barrels since the outbreak of the war with Iran in late February, as Washington seeks to compensate for the shortage in supplies caused by disruptions in shipping movement through the strait.
Dollar fluctuation
In the currency market, the dollar’s performance fluctuated as investors evaluated the repercussions of the military escalation and US inflation data. The dollar index fell to 99.903 points after the US military announced the completion of its strikes against multiple targets in Iran.
The euro reached $1.1553, slightly away from its lowest level in 10 weeks, which it recorded last week, but it squandered most of its gains since the ceasefire was announced in early April.
Nick Tweedall, chief market analyst at AFTX Global, said: “There is some news fatigue in the market, as such an escalation a few weeks ago would have likely pushed the Brent price to more than $100 a barrel and led to the rise of the dollar.”
He added: “Markets crave a little certainty… Will this conflict and the closure of the Strait be the new status quo, or is it just another negotiating tactic that revives hopes for peace?”
At the same time, American data showed that the consumer price index rose by 4.2% on an annual basis during May, which is the highest level since April 2023, which reinforced fears of continued inflationary pressures due to rising energy prices, and prompted traders to expect a rise in US interest rates by 25 basis points next December.
