Brent Crude Surges Above $92 as Iran Tensions Fuel Oil Price Rally
Crude oil prices continued their upward trend on Thursday as tensions between the US and Iran escalated. The Brent crude benchmark rose to above $92 a barrel, while West Texas Intermediate (WTI) held near $85.
The price increase was attributed to renewed US strikes on Iran, which revived concerns about Middle East production and shipping routes. This led to an increase in the geopolitical risk premium, which is the extra amount traders pay when conflict threatens production or transportation.
U.S. crude inventories fell by 7.2 million barrels to 404.5 million barrels in the week ended July 24, according to the Energy Information Administration. This decline was larger than expected and pushed commercial stocks to their lowest level since 2018.
The continued tightness of supplies has kept Brent supported above $90, while WTI remains above $80. However, further gains will depend on whether the conflict disrupts actual oil flows rather than producing only temporary price spikes.