ISLAMABAD: Oil prices rose for a fourth consecutive session on Thursday as escalating military tensions between the United States and Iran fuelled concerns over potential disruptions to global energy supplies, with Brent crude gaining about 12% and US West Texas Intermediate (WTI) nearly 13% since the latest exchange of strikes began.
Brent crude rose 0.4 per cent to around $85.5 a barrel. Likewise, WTI gained 0.5 per cent to about $80 a barrel.
Oil prices extended a rally driven by concerns that escalating hostilities could further disrupt oil flows through the Strait of Hormuz, a vital route for roughly one-fifth of global petroleum shipments.
The latest gains followed fresh US military strikes on Iranian targets, raising concerns that the conflict could widen and threaten energy infrastructure and shipping lanes across the Middle East.
Traders have increasingly factored in a geopolitical risk premium as tensions between Washington and Tehran show no signs of easing.
Iran’s Foreign Ministry stated on Wednesday that Tehran was not interested in any negotiations with the US, brushing aside hopes of an easing in market sentiment.
Oil traders focus on Hormuz
The Strait of Hormuz remains at the centre of market concerns. The narrow waterway links major crude exporters in the Arabian Gulf to global markets and handles a significant share of the world’s seaborne oil trade.
ALSO READ: Oil Prices Rise as US Reimposes Iranian Ports Blockade
Any disruption to tanker traffic through the route could tighten global supplies and push prices higher.
Analysts said oil markets remain highly sensitive to developments in the conflict, with investors closely monitoring both military actions and diplomatic efforts for indications of whether tensions will escalate further or move towards de-escalation.
Despite the recent rally, market participants noted that physical supply disruptions have so far remained limited, leaving prices largely driven by risk perceptions rather than actual losses of crude production or exports.
Oil has now posted four consecutive daily gains, adding to a sharp advance since the latest US-Iran strikes began, underscoring growing investor concerns over the security of global energy supplies and the stability of one of the world’s most important oil-producing regions.
