NEW YORK – Global oil prices surged about nine per cent on Thursday, reaching their highest level in nearly four years, as escalating attacks by Iran on oil and transport infrastructure across the Middle East intensified fears of supply disruptions.
Brent crude futures settled at $100.46 per barrel, gaining $8.48 or 9.2 per cent after hitting an intraday high of $101.60. Meanwhile, US West Texas Intermediate (WTI) crude closed at $95.70 per barrel, also rising $8.48, or 9.7 per cent. Both benchmarks recorded their strongest closing levels since August 2022.
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The sharp rise in prices comes amid growing concerns over the closure of the Strait of Hormuz, a key maritime route through which a significant portion of the world’s oil supply passes. Iran’s supreme leader has vowed to keep the strategic waterway shut as tensions in the region escalate.
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Energy analysts warn that the global oil market remains heavily imbalanced. Jim Burkhard, vice president and global head of crude oil research at S&P Global Energy, said the situation is unlikely to stabilise until shipping through the Strait of Hormuz resumes and oil production and transportation systems return to normal.
The conflict has also begun to disrupt regional energy operations. Iraqi security officials reported that two fuel tankers in Iraqi waters were struck by explosive-laden Iranian boats, while Iraq’s oil ports have halted operations. Oman has also moved vessels away from its key export terminal at Mina Al Fahal as a precaution.
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In the United States, Energy Secretary Chris Wright said the US Navy could potentially escort ships through the Strait of Hormuz by the end of the month, although he noted that global oil prices were unlikely to reach $200 per barrel.
Meanwhile, the International Energy Agency described the situation as the largest oil supply disruption in global market history, approving the release of a record 400 million barrels from strategic reserves to help stabilise prices.