Oil Prices Climb 2% to Six-Month High on US-Iran Tensions
Oil prices surged around 2% on Thursday, reaching their highest levels in six months as investors reacted to escalating tensions between the United States and Iran.
Brent crude futures rose $1.23, or 1.8%, to $71.58 per barrel. U.S. West Texas Intermediate (WTI) crude gained $1.34, or 2.1%, to $66.53 per barrel.
After jumping more than 4% in the previous session, Brent is on track for its highest close since late July, while WTI is poised for its strongest finish since early August.
Geopolitical Risks Drive Oil Rally
The rally in oil prices is largely driven by concerns that rising military activity in the Middle East could disrupt global supply.
According to market analysts, traders are pricing in the risk of potential U.S. military action against Iran. The possibility of further escalation has increased volatility across energy markets.
Iran recently conducted military drills that temporarily shut down the Strait of Hormuz — a critical shipping route through which roughly 20% of the world’s oil supply passes. Reports also indicate that Iran plans joint naval exercises with Russia.
President Donald Trump emphasized that Washington is seeking a meaningful agreement with Tehran but warned of consequences if negotiations fail.
The U.S. has also deployed warships near Iran, and officials are evaluating whether to continue diplomatic engagement or consider alternative actions.
Meanwhile, aviation authorities issued notices regarding planned rocket launches in southern Iran, and several countries have advised their citizens to leave the region.
Saudi Exports, OPEC+ and Ukraine Talks in Focus
In separate developments, Saudi Arabia’s crude oil exports declined to 6.988 million barrels per day, the lowest level since September, according to Joint Organizations Data Initiative figures.
Earlier reports suggested that OPEC+ — which includes the Organization of the Petroleum Exporting Countries and producers such as Russia — may consider resuming gradual output increases starting in April.
At the same time, peace talks between Ukraine and Russia ended without progress, adding another layer of geopolitical uncertainty to global energy markets.
US Oil Inventories and Demand Outlook
Market sources reported that U.S. crude, gasoline, and distillate inventories declined last week, based on data from the American Petroleum Institute. This contrasts with earlier expectations for a rise in crude stockpiles.
Official inventory data from the Energy Information Administration (EIA) is scheduled for release later today.
Despite the recent surge in prices, the International Energy Agency (IEA) has indicated that global oil demand growth remains below one million barrels per day and that a supply surplus is still expected.
For now, geopolitical tensions remain the dominant driver of oil market sentiment.
