Oil Prices Surge on US-Iran Conflict Fears

Oil prices continued to rise on Thursday, buoyed by concerns over potential military conflict between the United States and Iran. The Brent futures price climbed $1.09, or 1.55%, to $71.44 a barrel, while US West Texas Intermediate (WTI) crude gained $1.09, or 1.7%, to $66.28.

The increase in oil prices comes as both the US and Iran have stepped up military activity in the region. The Strait of Hormuz, which accounts for about 20% of global oil supply, was briefly shut down by Iran on Tuesday, further fueling concerns over potential disruptions to oil supplies.

Saxo Bank analyst Ole Hansen noted that the market is already pricing in a significant geopolitical risk premium due to the conflict. Energy Aspects analyst Richard Jones added that oil prices could continue to rise if the perceived likelihood of strikes on Iran intensifies.