Global oil prices jumped sharply on Thursday as uncertainty around the ongoing conflict between the United States and Iran unsettled markets and raised concerns over supply disruptions.
Brent crude surged by $6.33, or 6.3 percent, to reach $107.49 per barrel in early trading. Meanwhile, US West Texas Intermediate (WTI) crude rose $5.28, or 5.3 percent, to $105.40 per barrel.
The rebound came after a brief dip earlier in the day, when both benchmarks had fallen by more than $1 before US President Donald Trump addressed the nation. Prices had also closed lower in the previous session, reflecting volatile market sentiment.
In his remarks, Trump said the US would continue its military campaign against Iran but stopped short of offering a clear timeline for when the conflict might end. He stated that the operation was nearing its goals and could conclude within two to three weeks, though no firm details were shared.
No clear path to de-escalation
Market analysts said the lack of clarity on a ceasefire or diplomatic solution has kept investors on edge.
Priyanka Sachdeva, a senior market analyst at Phillip Nova, noted that the absence of any clear signals around de-escalation has added to market anxiety. She said prices could move even higher if tensions worsen or if risks to key shipping routes increase.
Concerns have also grown around maritime security in the region. On Wednesday, an oil tanker leased to QatarEnergy was reportedly struck by an Iranian cruise missile in Qatari waters, according to the country’s defence ministry. The incident has added to fears about the safety of oil shipments passing through critical routes.
The International Energy Agency has also warned that any sustained disruption to supplies could begin to affect Europe’s economy as early as April. The region had so far managed to cope using shipments arranged before the conflict began.
Claudio Galimberti, chief economist at Rystad Energy, said markets are still trying to make sense of the situation. With no clear plan for a ceasefire or exit strategy, uncertainty is likely to persist in the near term.
As tensions continue, traders are expected to closely monitor developments in the region, with oil prices likely to remain sensitive to any signs of escalation or easing.
