Oil prices rose more than 1.5% on Thursday to reach their highest level in more than six weeks, as the United States launched a new round of strikes on Iran.

Brent crude futures reached $96,

Brent crude futures rose $1.93, or 2%, to $96 by 0011 GMT, the highest since June 8. Brent crude had gained more than $3 to $94.07 at settlement in the previous session. U.S. West Texas Intermediate crude rose $1.44, or 1.7%, to $88.27 after gaining about 3% on Wednesday.

The U.S. military said it carried out attacks against Iran for the 12th straight night, hours after U.S. President Donald Trump threatened to destroy a bridge or power plant in Iran every time it fires on a ship in the Strait of Hormuz, escalating tensions in the war.

Iran's Revolutionary Guards said an oil tanker caught fire following an explosion as it tried to pass through what it described as a mined route south of the Strait of Hormuz, adding that two other tankers turned back. The Guards said the strait is under their control and "completely closed" amid continued U.S. operations in the region, warning that they will not allow any tanker to enter or exit the strait without coordination with Iran.

On the supply side in the United States, the Energy Information Administration reported that crude oil inventories rose by 2 million barrels last week, refinery utilization rates declined, and oil exports fell while imports rose.

In the same vein, gold prices fell on Thursday from their two-week high in the previous session amid escalating conflict in the Middle East that pushed oil prices higher, while traders turned their attention to the Federal Reserve's meeting scheduled for next week for clues on the timing of any potential interest rate hikes.

Spot gold settled at $4,132.01 per ounce by 0324 GMT, after rising to $4,165.87 in the previous session, the highest since July 7. U.S. gold futures for August delivery fell 0.4% to $4,134.60.

Among other precious metals, spot silver rose 0.3% to $59.90 per ounce, platinum gained 0.7% to $1,656.24, and palladium increased 0.8% to $1,301.25.

Oil prices rose to their highest in more than six weeks as the United States launched a new round of strikes on Iran and Yemen's Houthis claimed to have targeted two oil tankers in the Red Sea. The dollar fell 0.1%, making gold priced in the U.S. currency cheaper for holders of other currencies.

Two-year U.S. Treasury yields rose to their highest in 17 months as rising oil prices sparked fears that renewed disruptions in energy supplies could fuel inflation and increase the likelihood of U.S. interest rate hikes.

The Federal Reserve meets next week and is widely expected to keep U.S. interest rates unchanged. The European Central Bank is almost certain to keep interest rates unchanged on Thursday, but will leave the door open for another rate hike in September.