Global oil prices moved higher on Thursday, with Brent crude approaching $79 per barrel after geopolitical developments in the Middle East reduced fears of further disruptions to global energy supplies.
Brent crude rose by 88 cents, or 1.13%, to $78.90 per barrel. Meanwhile, West Texas Intermediate (WTI) crude gained 87 cents to reach $74.37 per barrel.
The latest increase followed two days of market volatility. Investors reacted to renewed U.S. military action against Iran and growing uncertainty over security in the Strait of Hormuz. However, oil prices strengthened after signs that the situation may not escalate further.
Earlier this week, Brent crude briefly traded above $79 per barrel, reaching its highest level in two weeks. Traders closely monitored developments in the Gulf, where the Strait of Hormuz remains one of the world’s most important oil shipping routes.
The U.S. military said its recent operations aimed to help keep the Strait of Hormuz open for international shipping. The announcement came shortly after U.S. President Donald Trump said a temporary agreement related to the conflict had come to an end, raising concerns about regional stability.
Despite those concerns, analysts believe fears of major supply disruptions have eased for now. Tony Sycamore, a market analyst at IG, said the wave of uncertainty surrounding oil shipments through the Strait of Hormuz has largely subsided. However, he noted that shipping companies are likely to remain cautious while tensions continue.
The shipping industry is also watching the situation closely. Insurance industry sources said several war-risk insurers have advised shipping companies to delay voyages through the Strait of Hormuz. Other insurers are reviewing their policies after recent attacks targeting commercial vessels in the region.
The Strait of Hormuz handles a significant share of the world’s crude oil exports. Any disruption to shipping through the waterway can quickly affect global energy markets and push oil prices higher.
Market participants will continue monitoring geopolitical developments in the Middle East over the coming days. Traders are also watching supply conditions and shipping activity to assess whether oil prices will continue rising or stabilize near current levels.
