Oil prices surge 3% as Middle East conflict enters sixth day
211 Min Read
Oil prices surged over 3% in Asian trade on Thursday as the Middle East conflict entered its sixth day with no signs of easing, raising concerns about potential supply disruptions from a region that supplies a significant portion of the world’s crude.
At 01:01 ET (06:01 GMT), May Brent crude futures rose 4% to $84.64 a barrel, while West Texas Intermediate (WTI) futures climbed 4.2% to $77.75. Brent traded just below its highest level since July 2024, following a largely flat session on Wednesday.
The conflict began last Friday with coordinated U.S. and Israeli strikes on Iran, triggering retaliatory missile and drone attacks and sparking fears over the security of critical energy infrastructure. Tensions intensified after the U.S. sank an Iranian warship near Sri Lanka, signalling the crisis is expanding beyond the Persian Gulf.
Reports suggesting Iran’s intelligence ministry had reached out to Washington for negotiations were denied by Tehran, which called the claims “pure falsehood,” dampening hopes for a quick diplomatic resolution.
Supply concerns grew after Iran effectively closed the Strait of Hormuz, a key chokepoint for roughly 20% of global oil shipments. The disruption prompted Iraq to declare force majeure on some exports.
U.S. crude stocks added a bearish note, with American Petroleum Institute (API) data showing inventories rose by 5.6 million barrels for the week ended Feb. 28, well above forecasts of 2.2 million barrels, though lower than the previous week’s 11.4 million-barrel increase. Traders now await official figures from the U.S. Energy Information Administration.
