The Brent oil price climbed above $93 per barrel on Thursday, reaching a three-week high as uncertainty over possible U.S.-Iran talks intensified concerns about oil supplies from the Middle East. Brent crude rose 1.95% to $93.48 per barrel in early European trading, while U.S. West Texas Intermediate (WTI) crude gained about 2% to trade at $86.12 per barrel.
The latest rally marked the fifth consecutive day of gains for oil prices after U.S. President Donald Trump announced plans for what he described as an “unprecedented” economic pressure campaign against Iran. Trump also warned countries and entities supporting Iran that they could face severe economic consequences, raising fears that tougher sanctions could further disrupt the region’s oil supply.
Analysts said the growing pressure on Iran is adding to concerns about a prolonged disruption in one of the world’s most important oil-producing regions. ING commodities strategists Warren Patterson and Ewa Manthey said the latest warnings signalled an escalation in U.S. efforts to isolate Iran economically, potentially increasing uncertainty across global energy markets.
Despite Brent crude’s rise, some analysts believe oil prices may still be underestimating the scale of the supply pressures affecting fuel markets. Ole Hansen, Head of Commodity Strategy at Saxo Bank, said crude oil remains relatively available, but the bigger strain is being felt further down the supply chain. He noted that Brent trading around $90 was surprisingly low given the continuing disruption around a major global oil chokepoint.
The pressure is particularly visible in the diesel market, where prices have surged sharply. The U.S. diesel crack spread reached triple digits for the first time this week, climbing as high as $102 per barrel on Monday before easing to around $100 later in the week. With geopolitical tensions showing little sign of easing, traders and consumers will be watching closely to see whether tighter supplies push crude and fuel prices even higher.
source: oilprice
