Oil Prices Surge as Middle East Tensions Remain High

Oil prices rose on Thursday as investors weighed the prospects for global supplies in light of the ongoing Iran conflict. Brent crude futures increased by $1.16, or 1.32%, to $89 a barrel at 1332 GMT, while West Texas Intermediate crude futures gained 52 cents, or 0.63%, to $82.75.

The market had seen prices fall in the last three sessions as investors questioned whether a deal could lead to an increase in oil flows out of the Middle East Gulf. However, with little progress made throughout the week and continued restricted flows, some analysts believe that the market views on Thursday may have adjusted.

Despite diplomatic efforts by other countries, including Qatar's prime minister visiting Tehran to relaunch talks, the White House confirmed that no negotiations are currently happening between the U.S. and Iran. Treasury Secretary Scott Bessent stated that economic measures would lessen the need for new major military operations, but Iranian officials described the sanctions as 'inhumane' and 'hostile.'

Analysts warn of the risk of prolonged uncertainty, given the importance of Iran's geographical position and the leverage provided by the Strait of Hormuz. This route handles about one-fifth of global daily oil and liquefied natural gas supplies.