Crude oil prices surge 4% amid escalating U.S.-Iran conflict
Brent and WTI futures rise as market concerns grow over potential supply disruptions in the Middle East
Quick Look
- Crude oil prices jumped 4% on Thursday as intensifying conflict between the U.S. and Iran raises fears of energy supply disruptions.
- Brent crude reached $105.28 and WTI hit $100.05 per barrel amid reports of naval skirmishes and potential long-term hostilities.
AI-generated summary
Why It Matters
The U.S.-Iran conflict is currently in its seventh month. Fighting intensified this month following a period of relative calm in August.
Crude oil prices rose 4% on Thursday over worries about escalating tensions in the Middle East and their impact on energy supplies.
Futures for international benchmark Brent crude rose 4% to $105.28 a barrel by 8:32 a.m. ET. U.S. West Texas Intermediate futures jumped 4% to $100.05 per barrel.
Top White House advisors have discussed with President Donald Trump the possibility that the Iran war could drag on past Inauguration Day in January 2029, U.S. officials told The Wall Street Journal.
Fighting between the Washington and Tehran has erupted this month after a period of relative calm in August. Iran has tried to attack American warships over the past several days while the U.S. military has destroyed eight Iranian tankers since Saturday in retaliation.
The escalation in the U.S.-Iran conflict, now in its seventh month, is raising the risk of oil prices surging above $120 a barrel as attacks on shipping intensify, said Daan Struyven, co-head of global commodities research at Goldman Sachs, in an interview on CNBC's "Squawk Box Asia."
The physical market may be tightened even more by a further decline in transit volumes, broader escalation or threats to energy infrastructure, extending the upward move in oil prices, said Andrei Constantin, commercial director and trading adviser at TFP Software FZCO.
"WTI has completely unwound its selloff between early June and July, while Brent prices are now well above those seen in early June," said David Morrison, senior market analyst at Trade Nation.
Open Questions
- Will the conflict impact oil transit through the Strait of Hormuz?
- How will the U.S. administration respond to the potential long-term conflict?
