Oil Prices Surge Amid Heightened Tensions with Iran

Oil prices rose on Thursday, driven by concerns over potential military conflict between the United States and Iran in the oil-producing region.

The Brent futures benchmark increased $1.09, or 1.55%, to $71.44 a barrel, while U.S. West Texas Intermediate (WTI) crude gained $1.09, or 1.7%, to $66.28.

The Strait of Hormuz, through which about 20% of global oil supply passes, was shut down by Iran for a few hours on Tuesday without clear indication that it had reopened fully.

Saxo Bank analyst Ole Hansen stated that the market is strengthening an already notable geopolitical risk premium as the world's most important oil artery again sits within striking distance of conflict.