Oil Prices Spike to Six-Week Highs Amid US-Iran Conflict Escalation
Oil prices surged to fresh six-week highs on Thursday as tensions between the US and Iran escalated, exacerbating supply fears through the Strait of Hormuz.
The West Texas Intermediate (WTI) crude price rose to $93.05 per barrel, a 2.2% increase from Wednesday's settlement price of $91.01. Brent crude also reached six-week highs, trading around $97.39, up 1.8%, according to Reuters.
The market is dominated by concerns over the US-Iran conflict, with renewed airstrikes inside Iran and Israel threatening severe attacks on Iranian infrastructure. Shipping through the Strait of Hormuz remains severely constrained, with only six vessels crossing Wednesday, below recent averages.
Iran has also expanded its blacklist of ships deemed non-compliant, further increasing supply risks. Tight global inventories are amplifying the premium for oil, and refined-product supplies are another concern, with European gasoline refining margins surging above $62 per barrel.