futures traded higher on Thursday morning after US forces launched additional strikes on multiple targets in Iran.
At 10.09 am on Thursday, August Brent oil futures were at $94.46, up by 1.46 per cent, and July crude oil futures on WTI (West Texas Intermediate) were at $91.52, up by 1.66 per cent. June crude oil futures were trading at ₹8774 on Multi Commodity Exchange (MCX) during the initial hour of trading on Thursday against the previous close of ₹8726, up by 0.55 per cent, and July futures were trading at ₹8620 against the previous close of ₹8587, up by 0.38 per cent.
A press release by the US Central Command (CENTCOM) said that CENTCOM forces completed additional self-defence strikes against multiple targets in Iran on June 10, at the Commander in Chief’s direction.
CENTCOM forces launched strikes on Iranian military surveillance capabilities, communication systems, and air defence sites across Iran. US Marine Corps, Air Force, and Navy assets fired precision munitions on Iranian targets that posed a threat to US forces and international commercial ships transiting regional waters.
The strikes are in response to Iran’s unwarranted and continued aggression, it said.
In their Commodities Feed for Thursday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said oil prices have continued to rally in early morning trading on Thursday amid additional US strikes in Iran. US President Donald Trump threatened Iran that more strikes will follow if it doesn’t agree to a deal; Iran said the Strait of Hormuz will be closed until further notice.
While that isn’t something Iran can officially do, it can make vessel crossings a lot more difficult. This leaves shipowners reluctant to navigate the key chokepoint. It once again suggests a deal is still some way off and that energy flows from the Persian Gulf will remain heavily constrained, they said.
There have been media reports of increased oil flows through the Strait of Hormuz, with suggestions of around 2 million barrels a day of crude oil and refined products (compared to pre-war flows of around 20 million barrels a day).
“This doesn’t change our view. We had already been assuming flows of a little over 2 million barrels a day through the Strait of Hormuz. If anything, there’s downside risk to this number in the short term, given the more recent re-escalation,” they said.
In a post on the social media platform Truth Social, US President Donald Trump said: “Last month, I directed our Great US Military to execute a secret mission to support Oil Tankers and other Commercial Ships through the Strait of Hormuz. Today, I am pleased to announce that this effort has resulted in more than 100 MILLION Barrels of Oil making its way through the Strait, and into the Open Market. More than 200 Commercial Ships have safely travelled through the Strait. This wildly successful effort is because the UNITED STATES of AMERICA CONTROLS the Strait of Hormuz — NOT Iran. Their military is defeated, and their economy is lost. It’s over for Iran!”
ING Think’s Commodities Feed said the latest inventory data from the US Energy Information Administration (EIA) shows that the US oil market continues to tighten, with US commercial crude oil inventories falling 7.23 million barrels over the last week. This is the seventh consecutive week of declines.
June nickel futures were trading at ₹1679 on MCX during the initial hour of trading on Thursday against the previous close of ₹1710, down by 1.85 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June castorseed contracts were trading at ₹6563 in the initial hour of trading on Thursday against the previous close of ₹6549, up by 0.21 per cent.
June jeera futures were trading at ₹19075 on NCDEX in the initial hour of trading on Thursday against the previous close of ₹19155, down by 0.42 per cent.