Global crude oil prices extended their upward trajectory on Thursday, driven by renewed geopolitical tensions and concerns over potential disruptions to supply chains following stalled diplomatic discussions involving Iran and the United States, alongside wider regional instability.
According to a report by Reuters, the escalation comes after negotiations aimed at de-escalating tensions linked to Iran and Israel reportedly lost momentum. Market participants reacted swiftly to the perceived risk of further instability in key energy-producing regions, adding a fresh layer of volatility to already tight global oil markets.
Brent crude, the international benchmark, for June delivery rose by $1.91, or 1.62%, to settle at $119.94 per barrel. This marked the ninth consecutive day of gains, underscoring sustained bullish sentiment in the energy markets. Meanwhile, U.S. West Texas Intermediate (WTI) crude futures climbed by $0.53, or 0.59%, reaching $107.51 per barrel.
The upward pressure on prices has been further reinforced by concerns over supply security. A White House official noted that ongoing disruptions linked to restrictions affecting Iranian ports have raised alarm within the energy sector. In response, former U.S. President Donald Trump has reportedly engaged in discussions with several oil companies, focusing on strategies to mitigate the impact of prolonged supply interruptions and to stabilise market conditions.
Analysts suggest that the combination of geopolitical uncertainty and supply-side constraints is creating a persistent risk premium in crude pricing. With demand remaining resilient across major economies, particularly in Asia and parts of Europe, any additional disruption could further tighten the global balance.
Oil Price Movement Overview
| Benchmark | Contract Month | Price (USD per barrel) | Daily Change | Percentage Change |
|---|---|---|---|---|
| Brent Crude | June | 119.94 | +1.91 | +1.62% |
| WTI Crude | — | 107.51 | +0.53 | +0.59% |
Market observers warn that continued diplomatic deadlock, particularly involving key oil-producing regions in the Middle East, could sustain elevated price levels in the near term. At the same time, energy-importing nations may face mounting inflationary pressures if crude prices remain at these heightened levels for an extended period.
For now, traders remain highly sensitive to geopolitical developments, with even minor signals of instability proving sufficient to drive further gains in global oil benchmarks.