Brent Crude Surges to $108 as Iran War Fuels Global Supply Fears

LONDON: Global oil prices surged again on Thursday as the escalating war involving Iran raised fears of prolonged disruptions to international crude supplies.

Brent crude jumped as much as 7.1 percent during trading to reach $108 per barrel, before settling at $107.63 a barrel, up 6.34 percent from the previous session.

The closing price was Brent’s highest since May 19 and marked its biggest one-day gain in around six weeks.

US West Texas Intermediate (WTI) crude also climbed sharply, rising as much as 7.3 percent and crossing $103 per barrel for the first time since May.

WTI later settled at $102.48 a barrel, recording a daily gain of 6.69 percent.

The sharp increase reflects growing concerns among investors that the conflict could disrupt global oil supplies for an extended period.

Heightened tensions around the Strait of Hormuz and the Red Sea have pushed international oil prices back above the $100-per-barrel level this week.

The Strait of Hormuz is a vital route for global energy shipments, and any prolonged disruption to tanker traffic could significantly tighten supplies and push prices even higher.

The latest surge came amid continued exchanges of attacks between the United States and Iran, increasing uncertainty over the security of energy infrastructure and maritime routes across the region.

Investors are increasingly concerned that the current disruption may last longer than initially expected.

A prolonged reduction in oil shipments could place additional pressure on energy markets, increase transportation and insurance costs and raise fuel prices for consumers worldwide.

The latest rally has therefore brought crude prices back to levels not seen in months, with the possibility of further escalation keeping markets highly volatile.

Any additional disruption around the Strait of Hormuz or other major regional shipping routes could push oil prices further upward and deepen concerns over global energy security.