Oil prices rose on Thursday after renewed US strikes on Iran intensified concerns over supply disruptions in the Middle East. The developments added fresh uncertainty to global energy markets already unsettled by ongoing conflict and fragile ceasefire conditions. Investors reacted to fears of further disruptions in the Strait of Hormuz, a key global shipping route.
Brent crude increased by 1.8 percent to $95.95 per barrel, while US West Texas Intermediate rose 1.7 percent to $90.17. The gains reversed part of the previous session’s decline, when markets had briefly eased on hopes of a possible diplomatic breakthrough. Analysts said price movements remain highly sensitive to geopolitical headlines.
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A US official said American forces shot down Iranian drones and struck a control centre in Bandar Abbas. The official described the actions as defensive measures aimed at maintaining a fragile ceasefire. However, Iranian state media reported retaliatory actions targeting ships in the Strait of Hormuz.
The conflicting reports highlight growing instability in the region as both sides continue military and maritime operations. Kuwait also reported defensive responses to missile and drone activity in its airspace. Despite occasional signals of de-escalation, tensions remain elevated across key Gulf waterways.
Read more: Oil prices tumble on Iran peace hopes
Financial markets across Asia also reacted with declines in major indices, while technology stocks showed mixed performance. Economists warned that prolonged instability could drive inflation higher and force central banks to tighten monetary policy. Analysts said energy markets are likely to remain volatile until a stable agreement is reached.