Oil prices rose on Thursday after Iran intensified attacks on oil and transport infrastructure across the Middle East, fuelling fears of prolonged disruptions to global energy supplies.
Global benchmark Brent crude climbed US$4.47, or about 4.9 percent, to US$96.45 per barrel at 0733 GMT, after briefly touching US$100 earlier in the session.
Meanwhile, West Texas Intermediate crude, the main U.S. benchmark, rose US$4.05, or roughly 4.6 percent, to US$91.30 a barrel.
The gains came amid escalating security concerns in the Gulf after Iranian vessels reportedly attacked two oil tankers in Iraqi waters, according to port officials.
The incidents have heightened fears of supply disruptions through the Strait of Hormuz, one of the world’s most critical maritime chokepoints for global oil shipments.
Shipping traffic through the narrow waterway remained halted, raising alarm among traders and governments about the potential for a prolonged interruption to energy flows.
Roughly a fifth of the world’s oil supply normally passes through the Strait of Hormuz, linking major producers in the Gulf with global markets.
Energy analysts say any sustained disruption could send oil prices sharply higher, particularly if tensions escalate further or if key export infrastructure in the region is damaged.
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Earlier this week, Brent crude surged to US$119.50 per barrel — its highest level since mid-2022 — before retreating after comments from Donald Trump suggested the conflict involving Iran could end soon.
However, renewed attacks on shipping and energy facilities have reignited concerns about the stability of supplies from the Gulf region.
The International Energy Agency has proposed releasing up to 400 million barrels from strategic reserves in an effort to stabilise markets and prevent a severe supply shock.
Analysts caution that such a release may provide only temporary relief if the conflict drags on and shipping routes remain blocked.
“A coordinated release from strategic reserves could ease immediate market stress, but it would not fully offset a prolonged disruption to Gulf exports,” analysts said.
Oil markets have remained highly volatile in recent days as traders weigh geopolitical risks against expectations of global demand.
Higher crude prices also pose a risk to the global economy by increasing fuel and transport costs, potentially adding to inflation pressures already facing many countries.
Economists say sustained oil prices above US$100 per barrel could slow economic growth in energy-importing nations while boosting revenues for major oil exporters.
For now, market participants are closely monitoring developments in the Gulf, particularly any signs that shipping could resume through the Strait of Hormuz or that diplomatic efforts might de-escalate the crisis.
Until clearer signals emerge, analysts expect oil prices to remain volatile as geopolitical tensions continue to dominate energy markets.
