Global Oil Prices Rise Following Renewed Regional Tensions
International oil prices moved higher on Thursday amid reports of increased tensions in the Middle East, briefly pushing crude benchmarks up before easing slightly by the end of trading.
Brent crude futures settled at $105.07 per barrel, gaining $3.16 (3.1%), while West Texas Intermediate (WTI) crude closed at $95.85 per barrel, up $2.89 (3.11%).
Market sentiment shifted after reports emerged of heightened security activity over Tehran, which raised concerns about potential disruptions in the region. Additional reports also pointed to drone-related incidents near certain areas in Iraq, contributing to uncertainty in energy markets.
Despite the price increase, analysts noted that gains were limited by expectations that global oil supply routes will remain stable.
According to a survey conducted by the Federal Reserve Bank of Dallas, many energy sector executives remain optimistic about the outlook. The survey found that a significant number of respondents expect shipping activity through the Strait of Hormuz to return to normal levels in the coming months.
The Strait of Hormuz is a key global oil transit route, and any disruption can impact energy markets worldwide.
Analysts suggest that while short-term volatility may continue, confidence in supply stability could help limit further sharp price movements.
