Oil prices increased about 2% on Thursday, reaching their highest levels in six months due to growing concerns about potential conflict between the US and Iran.
Brent crude futures rose $1.23 (1.8%) to $71.58 per barrel, and US West Texas Intermediate (WTI) climbed $1.34 (2.1%) to $66.53.
Driving the news: The price rally followed a more than 4% gain on Wednesday, setting Brent and WTI on track for their strongest closes since July and August, respectively.
- Traders responded to reports of US military posturing and possible near-term action against Iran, with market sentiment driven by uncertainty in the region.
- Iran announced a joint naval exercise with Russia, just days after briefly closing the crucial Strait of Hormuz for military drills; this strait handles about 20% of global oil trade.
- President Donald Trump stated that the US sought a “meaningful deal” with Iran and warned of negative consequences if negotiations failed.
- Vice President JD Vance said Washington was weighing continued diplomatic engagement with Tehran versus other options.
- Iran issued warnings about rocket launches in its southern regions, and several nations advised their citizens to leave Iran.
Go deeper: Separately, Saudi Arabia’s crude oil exports dropped to their lowest level since September, at 6.988 million barrels per day, according to new data.
- OPEC+ was reportedly considering increasing oil output from April, as previously discussed in news reports.
- US crude oil, gasoline, and distillate inventories fell last week, contrary to expectations of a buildup, adding upward pressure to prices.
