Oil prices climbed on Thursday as the continued closure of the Strait of Hormuz intensified supply concerns all over the world, with the ongoing clash between the US-Israel nexus and Iran disrupting critical crude and gas flows from the Middle East.
Brent crude rose $2.44, or 3 percent at the time of writing to trade at $84 per barrel in early session dealings, while US West Texas Intermediate gained $2.45, or 3.3 percent to reach $77.
Murban crude skyrocketed by 8.53 percent to $88.44 per barrel.
The conflict expanded after a US.strike targeted an Iranian ship in the Indian Ocean. Meanwhile, US lawmakers in the United States Senate rejected a bipartisan resolution seeking to halt military operations and further hostilities against Iran.
Supply pressures increased as Iraq, OPEC’s second-largest producer, reduced output by nearly 1.5 million barrels per day due to storage constraints and limited export options.
At the same time, Qatar, the Gulf’s leading liquefied natural gas exporter, declared force majeure on gas shipments, with expectations that normal production levels may not resume for at least a month.
Maritime traffic through the Strait of Hormuz has slowed dramatically for the fifth consecutive day amid the conflict and retaliatory actions. Britain’s maritime trade monitoring agency reported an explosion near a tanker positioned southeast of Kuwait’s Mubarak Al Kabeer port, further heightening security concerns.
According to analysis from J.P. Morgan, approximately 329 oil tankers remain stranded in the Gulf as elevated risks deter movement. While Iran has avoided direct attacks on major energy infrastructure, shipping risks outweigh the need to resume operations for all categories of fleet in the region.
Energy analysts on X opined that most oil fields in the region could resume production within days once conditions stabilize. However, logistical bottlenecks remain the primary obstacle to recovery, particularly in Iraq and Qatar.
