Global crude oil prices have climbed to their highest levels in nearly two months as escalating tensions between the United States and Iran, along with supply disruptions linked to the Ukraine conflict, heightened concerns over energy markets.
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Physical crude cargo prices across the Middle East, Europe and Africa rose sharply this week, with some grades approaching $110 per barrel as buyers rushed to secure immediate supplies amid fears of further disruptions.
The benchmark Dated Brent crude, used to price more than 60% of physical crude oil cargoes worldwide, surged to $105.70 per barrel on Thursday, according to LSEG data. The price marked its highest level since late May and climbed above the $100-per-barrel threshold for the first time since early June.
Market analysts said renewed concerns over supply security have become the primary driver of the rally. The latest escalation in the Middle East has added uncertainty to global oil flows, while the ongoing war in Ukraine has further strained energy supply chains.
Oil broker Tamas Varga said supply-related fears have once again become the dominant factor influencing crude markets, as traders closely monitor geopolitical developments that could affect production and transportation.
Adding to market uncertainty, Kazakhstan announced that operations at the key CPC Blend crude export terminal on the Black Sea had been suspended following reported Ukrainian drone attacks. The disruption forced the country to reduce oil production significantly.
According to a source familiar with the matter, Kazakhstan’s crude output has fallen by nearly half to approximately 460,000 barrels per day, tightening global supplies at a time when demand remains resilient.
The combination of geopolitical instability, production cuts and concerns over shipping routes has intensified volatility in energy markets, prompting traders to expect continued price fluctuations in the coming weeks.
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Analysts say the outlook for crude prices will largely depend on whether tensions in the Middle East ease and whether disrupted export infrastructure returns to normal operations, both of which remain key factors influencing global energy markets.