Oil prices increased for a second consecutive day on Thursday, driven by escalating tensions between the U.S. and Iran, which disrupted key shipping routes. Brent crude rose by $1.06 to $91.80 per barrel, while U.S. West Texas Intermediate (WTI) gained 39 cents to reach $84.85. These fluctuations occurred amid U.S. military strikes targeting Iranian military sites, following Iran’s missile attacks on U.S. forces in the Middle East.
Geopolitical risks are maintaining a premium on oil prices, particularly concerning the Strait of Hormuz, a critical passage for global oil transport. Tim Waterer, chief market analyst at KCM Trade, noted that until safe passage is ensured, market prices will reflect ongoing tensions rather than hopes for diplomacy. The U.S. and Saudi Arabia’s recent joint military actions against Iran-backed forces in Iraq further highlight the conflict’s impact on oil markets.
Additionally, shipping disruptions in the Bab el-Mandeb strait, coupled with the Houthi group’s potential fees on commercial vessels, add further strain. The Caspian Pipeline Consortium also reported halting oil loadings due to a drone attack, signaling continued supply challenges in the region.
