Crude oil prices rallied sharply on Thursday as escalating geopolitical tensions in the Middle East renewed concerns over potential disruptions to global oil supplies. Brent crude settled up $3.04, or 3.83%, at $82.49 per barrel, while WTI gained $2.07, or 2.75%, to settle at $77.29 per barrel.
The market reacted after reports that an Iranian parliamentary committee is reviewing legislation that would prohibit U.S. and Israeli vessels, along with other ships deemed hostile, from transiting the Strait of Hormuz. The proposed measure would also impose fines of up to 20% of a vessel’s cargo value for violations, raising concerns over future shipping through one of the world’s most critical energy chokepoints.
Additional support came from continued military activity across the region. Yemen’s Houthi forces claimed missile and drone attacks against Saudi-aligned military targets, reinforcing concerns that the conflict could expand beyond the Persian Gulf and further threaten shipping through the Red Sea.
Global supply risks remain elevated as Gulf crude exports continue to run well below pre-conflict levels, while Iran has warned neighboring Gulf states that additional U.S. military action could prompt attacks on regional energy infrastructure. Markets also monitored reports of a Ukrainian drone strike that ignited a major refinery in Russia’s Yaroslavl region, adding to broader concerns over global energy supply security.