Oil prices rose by more than $1 after Iran said the Strait of Hormuz was closed following additional U.S. strikes on multiple Iranian cities. The development shifted market focus to the waterway, a key route for global crude flows, and increased concern over near-term supply disruptions from the Middle East.

President Donald Trump said further U.S. attacks would follow if no peace agreement is reached. Negotiations to end the conflict remained unresolved, and Iran said it would maintain its control over traffic through the strait.

In its June Short-Term Energy Outlook, the U.S. Energy Information Administration lowered its forecast for global oil demand in 2026 and said weaker demand could limit the scale of price increases tied to disruptions in flows through the Strait of Hormuz.

The agency also said that if the strait remains effectively closed in the near term, disruptions to global oil production and shipments would continue, with Middle Eastern producers having cut output by more than 11 million barrels per day and global inventories drawing by an average of 6.3 million barrels per day in the second quarter of 2026 and 7.6 million barrels per day in the third quarter.