Oil prices experienced wild swings on Thursday as geopolitical tensions in the Gulf sent shockwaves through global markets. Brent crude briefly surged to $102.70 per barrel—an intraday gain of nearly 9.5%—before settling at $99.45, while West Texas Intermediate (WTI) climbed to $95.01, later testing $97. Traders cited escalating strikes on oil infrastructure and tanker movements near Oman and Iraqi waters as the main triggers behind the volatility.
The spike in prices comes amid Iranian military activity and renewed threats in the Strait of Hormuz, a critical artery for global oil flows. With approximately one-fifth of the world’s oil passing through this narrow waterway, the risk of supply disruptions has prompted tankers to reroute or slow operations, further fueling market anxiety.
Iran’s new Supreme Leader, Mojtaba Khamenei, publicly stated that the Strait of Hormuz must remain closed, coinciding with intensified Iranian Revolutionary Guard Corps (IRGC) strikes and heightened clashes involving Israel and Gulf Cooperation Council (GCC) states. These developments have effectively halted tanker deliveries from the Gulf, forcing GCC countries to cut output by an estimated 10 million barrels per day as storage facilities fill up.
The International Energy Agency (IEA) called the situation the largest oil market disruption in history, prompting member nations to release 400 million barrels from strategic reserves. Energy experts say the surge—and the subsequent dip—reflects a geopolitical risk premium built into oil prices, warning that continued conflict could drive further market turbulence.
Analysts are closely monitoring the Strait of Hormuz, where even minor disruptions can ripple through the global oil market. Renewed tensions have pushed Brent crude back above the psychological $100 mark, signaling more volatility ahead for fuel prices worldwide. Traders and consumers alike are bracing for the economic implications of a supply crunch in one of the world’s most crucial oil-producing regions.
source: leadership