Brent crude prices surged over $1 per barrel on Thursday, amid a volatile trading session driven by shifting investor sentiments regarding the escalating US-Iran tensions and hopes for a potential resolution leading to the reopening of shipping routes in the Strait of Hormuz.
As of 0707 GMT, Brent futures climbed $1.48, representing a 1.63 percent increase, reaching $92.22 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude also saw a rise of 43 cents, or 0.51 percent, settling at $84.89 per barrel.
Following a significant surge of about 7 to 8 percent on Wednesday, triggered by heightened tensions due to US President Donald Trump’s threats towards Iran after an Iranian missile attack on a US base in Jordan, both contracts experienced a partial recovery in the current session.
The US Central Command confirmed conducting retaliatory attacks on Iran at 8:00 p.m. ET on Tuesday, with further strikes carried out on Iran-backed paramilitary forces in Iraq by the US and Saudi Arabia on Wednesday, marking a resumption of military actions against Iran following a brief pause.
While the market initially reacted to Trump’s aggressive stance with a price spike, analysts are now considering the potential for diplomatic solutions and the impact of actual oil supply disruptions on prices. The market dynamics, shaped by geopolitical developments and diplomatic efforts, are seen as crucial factors determining the sustainability of price increases.
In a separate development affecting supply, the Caspian Pipeline Consortium announced a suspension of oil loadings in response to a drone attack on a tanker, as reported by the Russian news agency Interfax.
Furthermore, reports indicated that a Qatari LNG tanker, the Al Areesh, successfully navigated through the Iran-designated route in the Strait of Hormuz with Iran’s approval, following its departure from Qatar’s Ras Laffan terminal around early July.
