Oil prices soared on Thursdays as the U.S. and Iran keep trading strikes in the Strait of Hormuz and a report detailed that President Donald Trump and advisors reportedly discussed the war dragging on past the end of his term.
Brent crude, the international benchmark, gained 3.90% and stood at $105.16 per barrel at 8:53 a.m. ET, while West Texas Intermediate, the U.S. benchmark, climbed 4.46% and topped $100 per barrel at the same time.
The Wall Street Journal noted that Vice President JD Vance, Secretary of State Marco Rubio and other top officials talked about the possibility that Tehran could continue resisting the blockade imposed by the administration.
The conversation stands at odds with remarks from Trump on Wednesday, when he claimed that he believed "war's going to end immediately after the election because they can't hold out any longer." "Right after the election, oil prices are going to be tumbling downward," he added.
The U.S. Central Command (Centcom) said the latest escalation involved its forces destroying five Iranian tankers in retaliation for an attempted attack against a warship.
"The U.S. warship successfully evaded the attempted Iranian attacks and continued to patrol regional waters. No American personnel were harmed," Centcom added. "Iran has used the tankers as part of a multibillion-dollar shadow network that funds the IRGC and its regional proxies. Iran has no means by which to defend these vessels."
Iran, in turn, had claimed that its revolutionary guard had struck two U.S. vessels, along with eight oil tankers in the Gulf. Forces added that the vessels had sought to transit the Strait of Hormuz through areas it designated as "forbidden and unsafe."
The Trump administration also escalated pressure on Iran through economic means, sanctioning over a dozen airlines.
The department noted in a statement that, overall, the "Treasury's Office of Foreign Assets Control (OFAC) sanctioned 36 targets for supporting Iran's aviation sector, which the regime uses to move weapons, personnel, and illicit cargo."
The decision also targets "covert front companies, foreign intermediaries, and deceptive transshipment routes that Iran relies on to obtain U.S.-origin aircraft and sensitive technology."
"Under Operation Economic Outcast, we promised severe consequences for those providing financial lifelines to the Iranian regime," Treasury Secretary Scott Bessent said.
"Let this be a warning to anyone doing business with Iran's remaining airlines, all of which we sanctioned today: You are at risk of being cut off from the global financial system," he added.
