NEW YORK — Benchmark U.S. crude futures rose 5.4% to $99.44 per barrel in New York on Thursday after Iran closed the Strait of Hormuz in response to attacks in Lebanon. Brent crude futures climbed 4.1% to $98.70 per barrel during the same trading session.

The strait is a transit point through which about one-fifth of the world's oil passes, and it was largely closed during the Thursday market session. "(Oil) prices rebounded as fighting in the Middle East continued, and the ceasefire outlook deteriorated, keeping uncertainty around the Strait of Hormuz firmly in focus," ING Bank analysts Ewa Manthey and Warren Patterson said.

Iran's decision to shut the waterway came as Israeli strikes on Lebanon killed and injured hundreds of people. Since the war in the region began and fighting near the strait intensified, oil and jet fuel prices have spiked sharply.

President Donald Trump announced a two-week ceasefire with Iran late Tuesday. Thursday's price surge and the continued closure of the strait indicated that the agreement had not yet restored normal tanker traffic through the waterway. The U.S. demanded that the Strait of Hormuz be reopened, though Iran had not publicly responded to the demand as of Thursday's market close.

The economic consequences of the strait's closure have extended beyond energy markets. Travelers worldwide are facing rising airfares, additional fees, and fewer flight options as airlines contend with higher fuel costs.

The International Monetary Fund is preparing to lower its global growth forecasts due to the economic effects of the conflict with Iran. The fund had not yet released revised figures as of Thursday.