Crude oil prices surged more than 2% on Thursday, settling at their highest levels in nearly a month as escalating geopolitical tensions and continued supply disruptions across the Middle East kept significant upward pressure on the market. Brent crude settled up $2.16, or 2.4%, at $93.78 per barrel, while WTI gained $2.00, or 2.3%, to settle at $87.83 per barrel. Both benchmarks reached their highest settlement levels since July 24.
The rally followed new threats from President Trump targeting Iran and countries providing economic support to Tehran. The administration warned of potential economic retaliation against nations offering Iran financial or commercial assistance, increasing uncertainty over the possibility of additional sanctions and broader disruptions to global energy markets.
The Strait of Hormuz remains the market’s primary concern as shipping traffic continues to operate far below pre-war levels. Before the conflict began on February 28, approximately one-fifth of global oil and liquefied natural gas supplies moved through the waterway. With no resolution in sight, continued restrictions are keeping millions of barrels of Middle Eastern crude from reaching global markets.
Tensions have also increased between Iran and other Gulf states after the United Arab Emirates suspended all financial and economic transactions with Iran. The move further highlights the growing regional divisions and adds another layer of uncertainty to already disrupted energy flows.
Supply concerns have extended beyond crude oil to refined products. U.S. distillate inventories, including diesel and heating oil, declined for a third consecutive week, reflecting continued tightness in fuel markets.
With the Strait of Hormuz still heavily restricted and diplomatic efforts showing little progress, geopolitical risk continues to drive crude prices higher. The potential for additional economic measures against Iran and countries supporting Tehran, combined with ongoing disruptions to Middle Eastern oil flows, leaves the market vulnerable to further volatility.