Brent crude holds near a six-week high as US-Iran strikes continue and the Strait of Hormuz closure threat grows, while Asian equities rally on AI spending and Australian jobs surge.
Brent crude held near a six-week high on Thursday. The US and Iran traded strikes for a 12th straight night. CENTCOM said the latest round of attacks on Iranian military targets was ordered directly by President Trump. The goal was to further degrade Iran's ability to threaten commercial shipping, the command said. Axios and the Wall Street Journal reported that Washington is surging special forces, jets and medics into the region alongside an extra $73 billion in war funding.
The Strait of Hormuz threat added a new layer. Iran's Revolutionary Guards declared the waterway fully closed, warning no tanker would transit without their coordination. They threatened to halt oil flows entirely if Iranian infrastructure comes under attack. The claim followed reports of one tanker catching fire and two others turning back near the strait's mined southern route. The Houthis extended their own campaign into the Red Sea, claiming strikes on the Saudi tankers Layla and Encelia. UKMTO said only one vessel had actually been hit. Kuwait reported intercepting drones over its own airspace, a sign the conflict's reach is spreading beyond the two original chokepoints.
Gold pulled back on the news, reversing earlier gains. The US dollar softened modestly against most peers. Not every market was in risk-off mode. Asian equities extended a sharp rally. The Kospi rose more than 3%. The Nikkei gained around 1%. Google raised its full-year capex guidance to $195 billion to $205 billion. Tesla reported strong earnings. Chipmakers including SK Hynix and Samsung rose on the news. Australia added its own data point: June employment surged 76,300, blowing past a 15,000 forecast. The Australian dollar ticked higher after the print.
The combination of an escalating Middle East conflict and a resilient AI-driven equity rally is keeping volatility elevated across oil, currencies and regional equities. The Revolutionary Guards' threat to halt oil flows remains the most immediate risk for crude markets.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.